Facts of the Case

The petitioner, M/s Bismillah Iron Merchants, a proprietary concern in Guntur represented by its proprietrix, is registered under GSTIN 37EAWPS7199E1ZK. For the tax period 2018-19, the 3rd respondent issued a show cause notice dated 11.02.2025 in Form GST DRC-01 and subsequently passed a penalty/assessment order dated 20.06.2025 in Form GST DRC-07 under the Goods and Services Tax Act, 2017. The petitioner challenged this order before the High Court, principally on the ground that it did not bear a Document Identification Number (DIN).

Issues Involved

  1. Whether a GST assessment/penalty order issued without a DIN is valid and enforceable.
  2. Whether such an order deserves to be set aside solely for this defect.

Petitioner's Arguments

  • The impugned DRC-07 order dated 20.06.2025 carried no DIN, contrary to CBIC Circular No.128/47/2019-GST.
  • Relied on the Supreme Court's ruling in Pradeep Goyal v. Union of India holding that a DIN-less order is non-est and invalid.
  • Relied on Andhra Pradesh High Court precedents in Cluster Enterprises and Sai Manikanta Electrical Contractors, both setting aside orders for want of DIN.

Respondent's Arguments

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

Court Order / Findings

  • The Court noted the CBIC circular and the Supreme Court's holding in Pradeep Goyal that an order without a DIN is non-est and invalid.
  • Following its own Division Bench rulings in Cluster Enterprises and Sai Manikanta Electrical Contractors, the Court held that non-mention of a DIN vitiates the validity of the proceedings.
  • The writ petition was disposed of, setting aside the impugned order dated 20.06.2025, with liberty to the 3rd respondent to conduct a fresh assessment after issuing notice to the petitioner and assigning a valid DIN.
  • The period between the impugned order and receipt of this order was excluded for computing limitation. No costs were awarded.

Important Clarification

  • Any GST order — assessment, penalty, or show cause notice — that does not bear a DIN is treated as non-est and invalid per binding CBIC Circular No.128/47/2019-GST and the Supreme Court's ruling in Pradeep Goyal, irrespective of the tax period involved.
  • Courts consistently set aside such orders while granting liberty to the department to redo the exercise with a properly generated DIN, excluding the intervening period from limitation.

Sections Involved

  • Goods and Services Tax Act, 2017 — governs assessment and penalty proceedings culminating in Form GST DRC-07.
  • CBIC Circular No.128/47/2019-GST — mandates a Document Identification Number on communications issued by tax officers.

Decision – In Favour of

The order is substantially in favour of the Assessee: the impugned DRC-07 penalty order was quashed for want of DIN, though the department retains liberty to reassess afresh with a valid DIN.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: W.P.No.20847 of 2025
Coram: Justice R. Raghunandan Rao and Justice T.C.D. Sekhar
Date of Order: 06.08.2025

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