DRC-07 Order Set Aside Due to Violation of Natural Justice in Absence of Upload and Service

Case Details:
Case Title: M/s Rahman Sales v. State of Jharkhand
Court: High Court of Jharkhand at Ranchi
Petition Number: W.P.(T) No. 1309 of 2024
Category of Dispute: Principles of Natural Justice – Non-communication of Order
Date of Judgment: 01.05.2025
Relevant Sections: Section 73(1) of JGST Act, 2017
Forms involved: GST DRC-01, DRC-01A, DRC-07

Facts of the Case [¶1–¶5]

• An inspection was conducted at the petitioner’s premises on 01.12.2018, without his presence [¶2].

• Petitioner was later issued a summary of order in Form GST DRC-07 dated 14.03.2019 for FY 2017–18 demanding tax, interest, and penalty [¶3].

• Petitioner contended that:

  • No DRC-01 (show cause notice) was received before DRC-07 [¶3].

  • No DRC-01A (pre-SCN) was issued as required under Section 73(1) of JGST Act [¶3].

  • DRC-07 was not uploaded on the GST portal nor attached in the email sent on 14.03.2019 [¶5].

Questions in Consideration [¶6–¶8]

• Whether the issuance of DRC-07 without uploading it on the GST portal or communicating it via valid service constitutes a violation of natural justice?

• Whether absence of Form GST DRC-01A vitiates the demand order issued under Section 73?

Observations of the Court [¶6–¶8]

• Respondents failed to establish when DRC-07 was actually uploaded; no proof of communication was shown [¶6–¶7].

• Court held that authorities are obligated to serve or upload the adjudication order to ensure proper notice [¶8].

• The absence of upload or valid communication violated principles of natural justice [¶8].

Judgment of the Court [¶9–¶10]

• The order in Form GST DRC-07 dated 14.03.2019 and all consequential proceedings were set aside [¶10].

• Matter remanded to the 4th respondent with direction to serve a copy of the order, grant hearing to the petitioner, and pass a fresh speaking order [¶10].

🪞 Between Fine Lines:

1. The court ruled that merely passing an order isn’t sufficient unless it is duly communicated or uploaded.

2. Pre-show cause notice (DRC-01A) under Section 73 is essential to preserve principles of natural justice.

3. Absence of uploading or service invalidates the proceedings.

4. Technical glitches cannot override statutory procedural compliance.

5. Adjudicating authorities must document and demonstrate proper service of orders.

📚 Summary of Referred Cases:

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