Kerala HC Orders Assessee for Filing Statutory Appeal, No Basis for Incorrect Service of GST DRC-01 Notice

Kerala High Court Justice Dinesh Kumar Singh recently instructed M/S. N.T.K. Jewellers to formally contest the Goods and Services Tax (GST) Adjudication Notice through a statutory appeal. This decision stemmed from the absence of evidence suggesting any issues with the proper delivery of the GST DRC-01 notice.

M/S. N.T.K. Jewellers filed a challenge against the order from the Deputy Commissioner of State Tax, citing Section 73 of the Central Goods and Services Tax/State Goods and Services Tax Act, 2017. The assessed tax liability for the petitioner totalled Rs. 6.36 Lakhs.

The High Court bench, led by Justice Dinesh Kumar Singh, noted that rather than pursuing the typical path of a statutory appeal, the petitioner based their approach on a breach of natural justice.

The court observed that the petitioner received a show-cause notice (Ext.P1) on July 30, 2020, and responded through GST ASMT-10 (Ext.P2). Subsequently, a notice under Section 73(1) of the Kerala Goods and Services Tax Act, 2017, was issued, but the petitioner didn’t reply to it in DRC-01.

Justice Dinesh Kumar Singh highlighted that the assessment order detailed the sequence of events, particularly the petitioner’s non-compliance after the intimation in GST DRC-01. The court trusted the authority’s accurate portrayal of facts and dismissed the petitioner’s claim of improper notice service.

In the concluding judgment, Justice Dinesh Kumar Singh disposed of the writ petition, granting the petitioner the freedom to appeal against the Deputy Commissioner of State Tax’s order. The court also acknowledged the extension of the appeal deadline until January 31, 2024, as per Circular No.53/2023.