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The intention of the proper officer was to give an intimation in accordance with sub-section (5) of Section 74 and therefore, the intimation should have been in the Form GST DRC – 01A and not Form GST DRC – 01. There is a vast difference between Rule 142(1)(a) and Rule 142 (1A) of the Rules. Therefore, from now onwards, if the department deems fit to issue any intimation of tax ascertained as being payable under sub-section (5) of Section 74 in accordance with the Rule 142(1A) of the Rules, it shall issue notice in the Form GST DRC – 01A. The impugned intimation of tax in the Form GST DRC – 01 is hereby quashed and set aside.

Section 74 of the CGST Act, 2017 — Intimation in DRC-01A –— The applicant challenged the impugned SCN dated 14.03.2022. The applicant has received an intimation of the tax ascertained as being payable under Section 74(1) and (5) in the Form GST DRC – 01 dated 14th March 2022. The counsel for the applicant submitted that although the impugned notice is in the form of an intimation, yet it is as good as a final order. The respondent counsel submitted that a show cause notice under sub-section (1) of Section 74 of the Act would be issued. Once a show cause notice is issued, then the regular assessment proceedings would be undertaken. The court observed that by virtue of sub-section (5) of Section 74, one opportunity is given to the dealer to pay the amount towards tax as ascertained by the proper officer or on the basis of his own ascertainment. No SCN would be issued thereafter under sub-section (1) of Section 74 and the proceedings if any would be dropped. The intimation under sub-section (5) has to be strictly in Form GST DRC – 01A. It is not a show cause notice. The applicant had to come before this Court because the contents of the intimation are incorrect. The writ applicant has expressed apprehension that if he would not comply with the intimation, then the department may proceed to recover the entire amount. Therefore, the department needs to correct itself not only as regards their understanding of the entire procedure, but even the contents of the Forms are incorrect. The intention of the proper officer was to give an intimation in accordance with sub-section (5) of Section 74 and therefore, the intimation should have been in the Form GST DRC – 01A and not Form GST DRC – 01. There is a vast difference between Rule 142(1)(a) and Rule 142 (1A) of the Rules. Therefore, from now onwards, if the department deems fit to issue any intimation of tax ascertained as being payable under sub-section (5) of Section 74 in accordance with the Rule 142(1A) of the Rules, it shall issue notice in the Form GST DRC – 01A.

Held that:- The Hon’ble High Court quashed the impugned intimation of tax in the Form GST DRC – 01 and disposed the application with a clarification that if the proper officer wants to undertake a fresh exercise, he may do so in accordance with law.