Section 74(9) of the CGST Act, 2017—Show Cause Notice- Non issuance of GST DRC-01A —The petitioner challenged the order dated February 23, 2021 issued under Section 74(9). The counsel for the petitioner submitted that in terms of the provisions of Rule 142(1A), before passing any order under Section 74 , a show cause notice in Part A of FORM GST DRC-01A is required to be issued. The counsel for the respondents, while not disputing the fact that notice in Part A of FORM GST DRC-01A was not issued, submitted that subsequent reminders had given fair opportunity of hearing to the petitioner. The court observed that for initiation of proceedings against the petitioner, a notice as provided for under Rule 142(1A) in Part A of FORM GST DRC-01A was not issued. Any subsequent reminder will not cure inherent defect in proceedings initiated against the petitioner. Similar view has been expressed by the Delhi High Court in Gulati Enterprises' case and this Court in M/s Skyline Automation Industries' cases.

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