Validity of DRC 01 not having DIN, Goods and Services Tax - GST

[POOJA AGARWAL]

We have received the DRC 01 mentioing the SCN ref. no.; however no DIN is mentioned on DRC 01 as well as the attached Show Cause Notice. Can the legal sanctity of the Show Cause Notice be challenged on this ground?

Posts / Replies

[KASTURI SETHI]

Pl. go through following circulars carefully :-

Relevant Circular No. 122/41/2019-GST, dated 5-11-2019

"3. Whereas DIN is a mandatory requirement, in exceptional circumstances communications may be issued without an auto generated DIN. However, this exception is to be made only after recording the reasons in writing in the concerned file. Also, such communication shall expressly state that it has been issued without a DIN. The exigent situations in which a communication may be issued without the electronically generated DIN are as follows :-

(i) when there are technical difficulties in generating the electronic DIN, or

(ii) when communication regarding investigation/enquiry, verification etc. is required to issued at short notice or in urgent situations and the authorized officer is outside the office in the discharge of his official duties."

"4. The Board also directs that any specified communication which does not bear the electronically generated DIN and is not covered by the exceptions mentioned in para 3 above, shall be treated as invalid and shall be deemed to have never been issued.

5. Any communication issued without an electronically generated DIN in the exigencies mentioned in para 3 above shall be regularized within 15 working days of its issuance, by :

(i) obtaining the post facto approval of the immediate superior officer as regards the justification of issuing the communication without the electronically generated DIN;

(ii) mandatorily electronically generating the DIN after post facto approval; and

(iii) printing the electronically generated proforma bearing the DIN and filing it in the concerned file."

Also see C.B.I. & C. Circular No. 128/47/2019-GST, dated 23-12-2019

"5. The Board once again directs that any specified communication which does not bear the electronically generated DIN and is not covered by the exceptions mentioned in paragraph 3 of Circular No. 122/41/2019-GST, dated 5-11-2019, shall be treated as invalid and shall be deemed to have never been issued."

[POOJA AGARWAL]

Dear Sir,

Thanks for the prompt response. Circular No. 122/41/2019-GST specifies the documents (which must contain DIN) namely - search authorization, summons, arrest memo, inspection notices and letters issued in the course of any enquiry; now the query is whether DRC 01 is covered under this circular dated 05/09/2019 and 23.12.2019

[KASTURI SETHI]

Madam,

C.B.I. & C. Circular No. 128/47/2019-GST, dated 23-12-2019 talks of any communication.

I could not find circular mentioned by you.

[POOJA AGARWAL]

Thank You,

One last clarification required - whether SCN ref No. and DIN are two different things and one cannot be substiuted for the other?

[KASTURI SETHI]

Yes. Both are different.

[POOJA AGARWAL]

Thank You Sir

[Padmanathan Kollengode]

Is the SCN otherwise time barred? if the SCN is challenged, the Courts will likely direct the Dept to issue a SCN afresh with DIN etc ie curing the defects.

So effectively, you can try this ground if SCN would be time-barred if it is issued afresh. Otherwise, no real relief to the noticee.

[Amit Agrawal]

I am presuming that subject SCN is issued by Central GST authorities and not by State / UT GST authorities.

You should raise first ground of defense about non-availability of such SCN issued using relevant Board Circular/s read with Section 168(1).

But, please do not rely solely on above ground but defend yourself of merits of the case as well as limitation (as additional grounds, without prejudice to your first ground).

In this context, your attention is invited to recent SC ruling dated 03.01.2024 (THE COMMISSIONER OF INCOME TAX VERSUS BRANDIX MAURITIUS HOLDINGS LTD. - 2024 (1) TMI 276 - SC ORDER), wherein Interim stay of HC order [2023 (4) TMI 579 - DELHI HIGH COURT] as well as order of the ITAT [2022 (11) TMI 34 - ITAT DELHI] is granted by the Apex Court until further orders.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.