Rule 142 of the CGST Rules, 2017—Issuance of DRC-01A —The petitioner challenged the order dated November 10, 2022 (DRC-07) passed under Section 74(9). The counsel for the petitioner submitted that in terms of the provisions of Rule 142(1A) (before it was amended on October 15, 2020) before passing any order a SCN in FORM GST DRC-01A is required to be issued. In this case, notice in Part A of FORM GST DRC-01A having not been issued. He placed reliance on a Division Bench judgment of Delhi High Court in Gulati Enterprises v. Central Board of Indirect Taxes and Customs & others, 2022 U.P.T.C. The court observed that for initiation of proceedings against the petitioner a notice as provided for under Rule 142(1A) was not issued.

Held that:- The Hon’ble High Court set aside the impugned notice dated November 10, 2022 and granted liberty to the respondents to initiate fresh proceedings against the petitioner in accordance with law.