M/S Rahman Sales Thro Its Proprietor Matiur Rahman vs. The State Of Jharkhand Thro The Secretary Cum Commissioner State Tax Department

Facts

The petitioner, M/s Rahman Sales, assailed an order in Form GST DRC-07 dated 14.03.2019 for the period 2017-18, along with Form GST DRC-01 dated 10.12.2018 and subsequent proceedings. These stemmed from an inspection on 01.12.2018, conducted in the petitioner's absence. The petitioner claimed non-receipt of Form GST DRC-01 online before the issuance of DRC-07 and argued that a pre-show cause notice in Form GST DRC-01A, mandated by Section 73(1) of the JGST Act, 2017, was not issued. The petitioner also contended that DRC-07 was issued with an invalid reference number and was not uploaded on the portal on the date of its issuance, despite an email notification to access the dashboard. The respondents acknowledged a delay in uploading DRC-07 due to a technical glitch but failed to specify the actual upload date.

Held

The Court held that the respondents failed to demonstrate that Form GST DRC-07 was uploaded on the portal on the date of its issuance (14.03.2019) or that it was otherwise communicated to the petitioner. The docket proceedings indicated a delay in uploading, and the respondents' counter affidavit did not provide the actual upload date. This lack of proof of timely communication or upload violated the principles of natural justice. Consequently, the order in Form GST DRC-07 dated 14.03.2019 and the consequential proceedings were set aside. The matter was remitted back to the 4th respondent to supply a copy of the order to the petitioner, provide a hearing, and then pass an appropriate order in accordance with law. The issue regarding the non-issuance of Form GST DRC-01A was implicitly addressed by the remittance, as the re-adjudication would necessitate following the correct procedure.

Key Issues

1. Whether the issuance of Form GST DRC-07 dated 14.03.2019, without prior issuance of Form GST DRC-01A as mandated by Section 73(1) of the JGST Act, 2017, vitiates the proceedings? The petitioner argued that Section 73(1) mandates the issuance of a pre-show cause notice in Form GST DRC-01A before any demand is raised, and its absence renders the subsequent order invalid. The respondents did not explicitly counter this argument regarding the DRC-01A. 2. Whether the non-uploading of Form GST DRC-07 on the portal on the date of its issuance, and the failure to provide a specific upload date, constitutes a violation of the principles of natural justice? The petitioner contended that the order was not effectively communicated as it was not uploaded on the portal on 14.03.2019, and the respondents' counter affidavit did not clarify when it was actually uploaded. The respondents argued that there was a delay due to a technical glitch.