Facts of the Case

M/s. Srinivasa Kirana Mart, a proprietary concern, challenged a show cause notice dated 27.09.2023 and the consequent assessment order dated 24.11.2023 passed by the Assistant Commissioner (ST), Vizianagaram East Circle, for the tax periods FY 2017-18 to FY 2019-20, on the ground that neither a mandatory tax intimation notice in Form GST DRC-01A under Rule 142(1A) of the CGST Rules, 2017 was issued, nor was an opportunity of personal hearing under Section 75(4) of the AP GST Act, 2017 provided. The petitioner also challenged the consequential attachment of its bank account with Union Bank of India, S. Kota Branch, effected vide DRC-13 dated 12.03.2025, and sought its lifting along with a stay on recovery.

Issues Involved

  1. Whether an assessment order passed without the mandatory prior intimation in Form GST DRC-01A under Rule 142(1A) of the CGST Rules is valid.
  2. Whether the consequential bank attachment could survive if the underlying assessment order itself is invalid.

Petitioner's Arguments

  • The petitioner contended that the assessment proceedings for three financial years were initiated without the mandatory Rule 142(1A) intimation notice, rendering the entire proceeding and the resultant demand and bank attachment unsustainable.

Respondent's Arguments

  • The order records that the fact of proceedings having been initiated without prior issuance of the Rule 142(1A) notice was not disputed by the respondents.

Court Order / Findings

  • Relying on its own Division Bench ruling in New Morning Star Travels vs Deputy Commissioner, the Court held that an assessment order passed without prior issuance of the intimation notice under Rule 142(1)(A) of the CGST Rules, 2017 is invalid and liable to be set aside.
  • Following that precedent, the Court allowed the writ petition, set aside the assessment order dated 24.11.2023, and remanded the matter to the Assistant Commissioner (ST) for completion of 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

  • Issuing Form GST DRC-01A under Rule 142(1A) — the pre-notice intimation designed to give an assessee a first opportunity to settle or contest a proposed demand informally — is a mandatory precondition to a valid Section 73/74 proceeding; skipping it invalidates the entire assessment, independent of the merits of the tax demand itself.

Sections Involved

  • Rule 142(1A), CGST Rules, 2017 – mandatory pre-show cause intimation in Form GST DRC-01A.
  • Section 75(4), Andhra Pradesh Goods and Services Tax Act, 2017 – mandatory opportunity of personal hearing before an adverse order.
  • Form GST DRC-13, CGST Rules, 2017 – notice for attachment of bank accounts for recovery.

Decision – In Favour of

Allowed; entirely in favour of the Assessee, with the assessment order set aside and the matter remanded for a fresh assessment with proper prior notice.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: W.P. No. 17386 of 2025
  • Coram: Justice R. Raghunandan Rao and Justice Sumathi Jagadam
  • Date of Order: 30.07.2025

Link to Download the Order

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