Goods and Services Tax (GST) — Assessment — Rule 142(1A), Central Goods and Services Tax Rules, 2017 — Mandatory pre-assessment notice — Non-issuance — Effect — Amendment of Rule on 15.10.2020 making provision directory — Applicability to prior period — Held, not retrospective.

HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)
Before: The Honourable Sri Justice R. Raghunandan Rao & The Honourable Sri Justice Subhendu Samanta
Date: 5th November, 2025
Writ Petition Nos. 24423 & 24938 of 2025
[2025:APHC:46938]

CASE TITLE

M/s Adi Lakshmi Cement and Steel Traders … Petitioner in W.P. No. 24423 of 2025
and
GMRR Granites … Petitioner in W.P. No. 24938 of 2025

Versus
The Superintendent of Central Tax, Markapur Range, Guntur Commissionerate & Others … Respondents in W.P. No. 24423 of 2025
and
The State of Andhra Pradesh & Others … Respondents in W.P. No. 24938 of 2025

Counsel:
For Petitioners — Sri K. Raghavendra Reddy (W.P. 24423/2025), M/s Uttara Legal (W.P. 24938/2025)
For Respondents — Smt. Shanti Chandra, Standing Counsel for Commercial Taxes Department

HEADNOTES

Goods and Services Tax (GST) — Assessment — Rule 142(1A), Central Goods and Services Tax Rules, 2017 — Mandatory pre-assessment notice — Non-issuance — Effect — Amendment of Rule on 15.10.2020 making provision directory — Applicability to prior period — Held, not retrospective.

Where assessment orders under Section 73(9) of the Central/State GST Acts were passed without issuance of pre-assessment notice in Form GST DRC-01A under Rule 142(1A), the High Court held:

Held, for assessment periods prior to 15.10.2020, the unamended Rule 142(1A) was in force and made issuance of Form DRC-01A mandatory before passing an assessment order.
The amendment dated 15.10.2020, which made the requirement directory, could not be applied retrospectively.

Assessment orders passed without such notice are invalid and void ab initio.

Accordingly, assessment orders dated 28.02.2025 and consequent recovery notices were set aside, and matters remanded to assessing authorities to initiate proceedings afresh after issuing notice under Rule 142(1A) and providing opportunity of hearing.

Result: Writ Petitions allowed. Assessments quashed and remanded. No order as to costs.

CASE FACTS

• The petitioners — (1) M/s Adi Lakshmi Cement & Steel Traders, Podili, Prakasam District, and (2) GMRR Granites, Thotakurapalem, Visakhapatnam District — were served with assessment orders dated 28.02.2025 under Section 73(9) of the CGST/SGST Acts for alleged non-payment of tax for the financial years 2020–21 and 2018–19 to 2023–24 respectively.

• Petitioners challenged the assessments and consequent demand and recovery notices (Form DRC-13) on the ground that they were issued without issuance of the mandatory show-cause notice in Form GST DRC-01A as required under Rule 142(1A) of the CGST Rules.

• The Department, through the learned Standing Counsel, admitted that the records did not indicate any such notice having been issued.

• The respondents contended that after the amendment to Rule 142(1A) dated 15.10.2020, the issuance of Form DRC-01A had become directory and not mandatory, and hence, the absence of such notice would not invalidate the assessment.

HELD BY

Per R. Raghunandan Rao, J. (for the Bench):

1. The issue of validity of assessments without Form DRC-01A notice had been earlier decided by a Division Bench of this Court in New Morning State Travels v. Deputy Commissioner (ST), holding that assessment without prior notice under Rule 142(1A) is invalid.

2. The amendment dated 15.10.2020 converted the requirement from mandatory to directory, but that amendment could not be applied retrospectively.

3. Since the assessment periods in the present cases preceded the 15.10.2020 amendment, the unamended Rule 142(1A) governed the field, and non-issuance of the Form DRC-01A notice vitiated the assessments.

Held, therefore:

• The assessment orders dated 28.02.2025 were set aside.

• The matters were remanded to the respective assessing authorities to issue proper notice under Rule 142(1A), give opportunity of hearing, and pass fresh orders in accordance with law.

RESULT

• Writ Petitions (Nos. 24423 & 24938 of 2025) allowed.

• Assessment orders dated 28.02.2025 quashed.

• Matters remanded to authorities for de novo proceedings after notice.

• No order as to costs.

• Miscellaneous petitions, if any, closed.

CITATION

M/s Adi Lakshmi Cement & Steel Traders v. Superintendent of Central Tax, Markapur Range & Ors.
along with
GMRR Granites v. State of Andhra Pradesh & Ors.,
W.P. Nos. 24423 & 24938 of 2025, decided on 05-11-2025 (A.P. High Court, per R. Raghunandan Rao & Subhendu Samanta, JJ.) = 2025:APHC:46938