Facts of the Case: The petitioner, Montecarlo Bangalore Chennai Expressway P2P1 Pvt Ltd, was served an assessment order dated 07.11.2024 in Form GST DRC-07 for the tax period 2022-23, raising a demand and resulting in recovery of Rs. 49,31,772/- (IGST) from its Electronic Credit Ledger. The petitioner's rectification application against the order was also rejected by order dated 07.05.2025, allegedly without an opportunity of personal hearing. The petitioner approached the Andhra Pradesh High Court under Article 226 seeking quashing of the assessment order, the rectification-rejection order, and the recovery from the Electronic Credit Ledger, primarily on the ground that the assessment order did not carry a Document Identification Number (DIN).

Issues Involved:

  1. Whether an assessment order passed under the GST Act without a DIN number is valid in law.
  2. Whether recovery effected pursuant to such an order, and rejection of the rectification application without personal hearing, can be sustained.

Petitioner's Arguments:

  • The assessment order dated 07.11.2024 did not bear any DIN, rendering it invalid, arbitrary and without jurisdiction.
  • The rejection of the rectification application without granting personal hearing violated Section 161 of the GST Act and principles of natural justice.
  • The recovery of Rs. 49,31,772/- from the Electronic Credit Ledger was consequently unsustainable and liable to be reversed.

Respondent's Arguments:

  • The learned Government Pleader for Commercial Tax, on instructions, fairly conceded that the impugned assessment order did not carry a DIN number.

Court Order / Findings:

  • The Court relied on the Supreme Court's decision in Pradeep Goyal v. Union of India & Ors., which held that a GST order lacking a DIN, contrary to the CBIC circular, would be invalid, and on two Division Bench decisions of the Andhra Pradesh High Court itself — M/s. Cluster Enterprises and Sai Manikanta Electrical Contractors — which had similarly set aside orders devoid of a DIN.
  • Following this consistent line of authority, the Court held that non-mention of a DIN number in the assessment order rendered it liable to be set aside.
  • The impugned assessment order dated 07.11.2024 was accordingly quashed, with liberty granted to the first respondent to conduct a fresh assessment after issuing proper notice and assigning a DIN.

Important Clarification:

  • An assessment or demand order under the GST Act that does not bear a valid DIN is non-est and liable to be set aside, regardless of the merits of the underlying tax demand — the defect goes to the very validity of the proceeding.
  • Where such an order is quashed on this technical ground, the period between the impugned order and receipt of the Court's order is excluded for computing limitation for a fresh assessment, so the Department is not prejudiced in re-initiating proceedings.

Sections Involved:

  • Section 168, CGST Act, 2017 and CBIC Circular No. 128/47/2019-GST dated 23.12.2019 — mandating a DIN on communications issued by GST authorities.
  • Form GST DRC-07 — summary of the order creating demand.
  • Section 161, CGST Act, 2017 — rectification of errors apparent on the face of the record.

Decision – In Favour of: Assessee — the assessment order was quashed on the DIN ground, though the Department retains liberty to reassess afresh with a valid DIN.

Case Details: High Court of Andhra Pradesh at Amaravati; Writ Petition No. 26681 of 2025; CNR APHC010519042025; Coram: Hon'ble Sri Justice R. Raghunandan Rao and Hon'ble Sri Justice T.C.D. Sekhar; Date of Order: 24.09.2025.

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