HP HC: Form ASMT-10 Notice Must be Issued Before the GST Show Cause Notice

In the case of Prime Steel Industries Pvt. Ltd. vs State of H.P. & others, the Himachal Pradesh High Court incurred a consequential ruling towards the issuance of Form GST ASMT-10 notices before the issuance of SCN. The same blog specifies details of the case, the legal framework engaged, and the implications of the court’s decision.

The matter is pertinent to the issuance of DRC-01 notices by the assistant commissioner of state tax and Excise, Barotiwala, Himachal Pradesh, for the financial years 2021-22 and 2022-23.

Such notices were issued without providing ASMT-10, opposite to the provisions of rule 99 of the CGST Rules, 2017. The applicant claimed that the council losses to comply with the statutory needs of issuing ASMT-10 notices before SCN, as mandated by statute.

At the time of proceedings, the Hon’ble High Court of Himachal Pradesh stayed the proceedings initiated by the respondents on the grounds of the notices issued without following Rule 99.

The court witnessed the claim of the applicant and the admission by the additional Advocate General that ASMT-10 notices were not issued before the issuance of DRC-01 notices. Laying on Rule 99 of the CGST Rules, 2017, the court mentioned the mandatory nature of issuing ASMT-10 notices before SCN.

The ruling highlights the significance of procedural compliance in the GST proceedings. It reaffirms the principle that the legal needs should be compiled by the authorities to ensure fairness and clarity in the tax administration. Failure to follow these needs could be directed to the invalidation of the next proceedings, as shown in the same matter.

The judgment in Prime Steel Industries Pvt Ltd vs State of H.P. & others functions as a reminder of the importance of procedural regularity in Goods and Services Tax Cases. It emphasizes the mandatory nature of issuing Form GST ASMT-10 notices before the issuance of SCN, as defined by Rule 99 of the CGST Rules, 2017.

Assessees and authorities equally ensure strict compliance with legal provisions to sustain the virtue of the GST system and promote justice in tax administration.

Rule 99 of CGST Rules, 2017, makes it apparent that the issuance of notice to the applicant in form GST ASMT-10, before issuance of a SCN is mandatory.

Case Title	Prime Steel Industries Pvt Ltd Vs State of H.P. & others
Case No.:	CWP No. 2785 of 2024
Date	03.04.2024
Counsel For Appellant	Mr. J.S. Bedi, Mr. Goverdhan Lal Sharma and Mr. Yashpal, Advocates
Counsel For Respondent	Mr. Anup Rattan, Advocate General with Mr. Sushant Keprate, Additional Advocate
Himachal Pradesh High Court	Read Order