Facts of the Case

M/s. Manjeera Solar Systems, a proprietorship in Nellore, challenged an assessment order dated 02.07.2025, passed for the tax period 2019-20 under the CGST/SGST Act, 2017, and the consequential unsigned Summary of Order dated 03.07.2025 in Form GST DRC-07. The petitioner's grievance was that the assessment proceedings had been initiated without the mandatory prior notice under Rule 142(1A) of the CGST/SGST Rules, 2017, a factual position the Department did not dispute at the hearing.

Issues Involved

  1. Whether an assessment order passed without a prior notice in Form GST DRC-01A under Rule 142(1A) is valid.
  2. Whether the period between the impugned order and the fresh order should be excluded for limitation purposes.

Petitioner's Arguments

  • The Proceedings dated 02.07.2025 for tax period 2019-20 were passed without issuing prior notice in Form GST DRC-01A as mandated by Rule 142(1A) of the CGST/SGST Rules, and the Summary of Order in Form GST DRC-07 was also unsigned.
  • Both defects rendered the proceedings arbitrary, without jurisdiction and violative of the principles of natural justice.

Respondent's Arguments

  • The contention regarding non-issuance of prior notice under Rule 142(1A) was not disputed by the Department at the hearing.

Court Order / Findings

  • The Court relied on its Division Bench ruling in New Morning Star Travels v. Deputy Commissioner, which held that an assessment order passed without prior issuance of a notice under Rule 142(1A) is invalid and liable to be set aside.
  • Following that precedent, the Court allowed the writ petition, setting aside the assessment order dated 02.07.2025 and remanding the matter to the first respondent for completing the assessment afresh in accordance with law.
  • The period between the impugned order and receipt of the Court's order was directed to be excluded for computing limitation.

Important Clarification

  • A prior intimation notice in Form GST DRC-01A under Rule 142(1A) is a mandatory precondition before initiating formal assessment proceedings; its absence vitiates the resulting order regardless of the merits of the tax demand.
  • An unsigned Summary of Order in Form GST DRC-07 compounds the procedural infirmity and independently supports quashing the proceedings.

Sections Involved

  • Rule 142(1A), CGST/SGST Rules, 2017 – requires a pre-notice intimation in Form GST DRC-01A before formal assessment proceedings commence.
  • Form GST DRC-07 – summary order communicating the final demand determined in adjudication.

Decision – In Favour of

Decided in favour of the assessee. The assessment order was set aside for want of the mandatory prior notice, with the matter remanded for fresh assessment.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 29640 of 2025
Coram: Hon'ble Sri Justice R. Raghunandan Rao and Hon'ble Sri Justice Subhendu Samanta
Date of Order: 29.10.2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.