Facts of the Case

The petitioner, M/s Sri Durga Vengamamba Timber Depot, Vijayawada, represented by its proprietor Mrs. Allu Kondaiah, filed a writ petition before the High Court of Andhra Pradesh challenging an assessment order in Form DRC-07 dated 27.03.2019, passed by the Assistant Commissioner (ST), Bhavanipuram Circle, for the tax period 01.07.2017 to 22.05.2018. The order levied CGST of Rs.14,05,924/-, SGST of Rs.14,05,924/-, and an equal quantum of penalty under each head, aggregating to Rs.56,23,696/-. The petitioner sought a writ of mandamus declaring the assessment order illegal, arbitrary, without authority of law and jurisdiction, and void ab initio, along with an interim stay on recovery pending disposal of the writ petition, and a further direction restraining the Deputy Assistant Commissioner from demanding payment of the assessed tax and penalty during the pendency of the proceedings. The matter was heard by a Division Bench comprising Justice Ravi Nath Tilhari and Justice A.V. Ravindra Babu, with the petitioner represented by counsel and the respondents by the Government Pleader for Commercial Tax.

Issues Involved

  1. Whether the assessment order in Form DRC-07 dated 27.03.2019 levying CGST, SGST and penalty aggregating Rs.56,23,696/- was illegal, arbitrary and without jurisdiction.
  2. Whether the writ petition should be disposed of in light of the subsequently issued Notification No.53/2023-Central Tax, which extended the time for filing statutory appeals against such orders.

Petitioner's Arguments

  • The assessment order in Form DRC-07 levying tax and penalty totalling Rs.56,23,696/- was illegal, arbitrary, without authority of law and jurisdiction, and void ab initio, warranting that it be set aside.
  • Notification No.53/2023-Central Tax, dated 02.11.2023, which permits filing of appeals against orders under Sections 73/74 passed on or before 31.03.2023 up to 31.01.2024, was placed before the Court and its applicability to the present case was highlighted.

Respondent's Arguments

  • The learned Government Pleader for Commercial Tax did not dispute the applicability of Notification No.53/2023-Central Tax to the petitioner's case and submitted that the writ petition may be finally decided considering the Notification.

Court Order/Findings

  • The Division Bench extracted and considered the special procedure under Notification No.53/2023-Central Tax, dated 02.11.2023, enabling taxable persons to file appeals against Section 73/74 orders passed on or before 31.03.2023, up to 31.01.2024, subject to pre-deposit conditions.
  • Since the Government Pleader did not dispute the Notification's applicability, the Court disposed of the writ petition finally, granting the petitioner liberty to approach the appellate authority in compliance with the terms and conditions of the Notification dated 02.11.2023.
  • The Court did not independently examine the merits of the challenge to the DRC-07 assessment order, leaving that determination to the statutory appellate authority.
  • No order as to costs was made, and pending miscellaneous petitions were closed as a sequel to the disposal.

Important Clarification

Where a subsequent CBIC notification such as Notification No.53/2023-Central Tax extends the statutory appeal window for orders passed under Sections 73/74 of the GST Act, a pending writ petition challenging such an order will ordinarily be disposed of by relegating the petitioner to the appellate remedy under the Notification, rather than the High Court adjudicating the merits of the assessment itself. This approach preserves the statutory hierarchy of remedies, ensuring that factual disputes over the correctness of an assessment are examined first by the appellate authority rather than the writ court.

Sections Involved

  • Form GST DRC-07 under the CGST Rules, 2017 – summary of the order creating demand.
  • Sections 73/74 of the CGST Act, 2017 / APGST Act, 2017 – determination and assessment of tax.
  • Section 148 of the CGST Act, 2017 and Notification No.53/2023-Central Tax dated 02.11.2023 – special procedure for filing appeals.

Decision – In Favour of

The decision is largely procedural and favours the Assessee to the extent that it preserves the petitioner's right to challenge the DRC-07 assessment through the extended appellate window under Notification No.53/2023-Central Tax, but it does not decide the correctness of the underlying tax and penalty demand of Rs.56,23,696/- on merits.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Andhra Pradesh, Amaravati
  • Case No.: Writ Petition No.19534 of 2023
  • CNR: Not available
  • Coram: Justice Ravi Nath Tilhari and Justice A.V. Ravindra Babu
  • Decision Date: 05 December 2023
  • Disposal Nature: Writ petition disposed of

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