DRC-07

I am a supplier of services under the chapter 99, pure services which is exemted by nn 12/2017. Some authority deduct tds u/s 51 of gst and deposit the same. on this ground department issue the SCN. I have not aware about whole matter and my accountant not intimate me about this, hence no any reply furnished by me to the department. Hence, A DRC-07 issued for a period for April 2019 to Oct 2019 and tax, int, penalties calculated up to Dec 2019 and the recovery is made through bank attachment.
Another DRC 07 issued for Oct 2019 to March 2020 and tax, int, penalties calculated accordingly.
I have gone to high court for 1st SCN and order and high court quash the first assessment order and reopen the case. 2nd order was passed during the proceeding of high court. I have asked to this defect to proper officer after the orderpassed by high court prey to officer for quash both order and issue a fresh notice in this matter.
Now the proper officer rectify his mistake and quash the first notice and issue the notice only April to Sept 2019 and pass the order accordingly in favor of me .
I have not filled any appeal due to the officer said that 2nd order was rectify u/s 161, but time period is lapsed and proper officer transfer from another place. now, the department again initiated the recovery procedure for the 2nd DRC 07. When I intimate to department that you have already recover the tax ,intt.,and penalties up to Dec. and only I am liable only for Jan to March 2019, if any. Then department refuse to accept this application.
now I want to what is remedies available for me under gst law?
can proper officer rectify this order ?
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Hey Rakesh,

Your case is quite involved, but I’ll break down the key points and possible remedies under GST law for the DRC-07 and recovery issues you are facing:

Summary of Your Situation:

You are a supplier of services exempt under Notification 12/2017.
TDS under Section 51 of GST was deducted and deposited by some authority.
You received SCNs and DRC-07s for two periods: Apr-Oct 2019 and Oct 2019-Mar 2020.
You challenged the first SCN/order in High Court, which was quashed and remanded back.
Proper officer quashed first notice, reissued notice only for Apr-Sep 2019, and passed order favorable to you.
You did not appeal as officer said the second order was rectified u/s 161.
Now, the department initiated recovery for the second DRC-07 period, but you argued tax was already recovered.
Department refused your application; officer transferred.

Your Questions:

Can the proper officer rectify the recovery order?
What are your remedies under GST law?

Key Points & Remedies:

1. Rectification of Mistake (Section 161 of CGST Act)

Section 161 allows the proper officer to rectify any mistake apparent from records.
The officer has already rectified the first order.
For the second DRC-07/recovery order, the officer can rectify only if it’s a mistake apparent from record (like double recovery).
Since the officer transferred, you can request the successor officer to rectify.

2. Filing Appeal or Revision

You can file an appeal with the Commissioner (Appeals) under Section 107 for orders passed by the proper officer.
Time limits for appeal can be extended if you show sufficient cause (like not being informed).
Since the officer mentioned rectification, if you missed appeal, you can still file revision petition or appeal depending on your case stage.

3. Representation and Complaint

You can file a formal representation to the jurisdictional Commissioner explaining double recovery.
If the department refuses to accept, escalate to GST Ombudsman or Tribunal.

4. Stay on Recovery

You may apply for a stay on recovery during appeal or revision proceedings.

5. Check TDS Credit

Since TDS was deducted and deposited by the authority, you should check your electronic credit ledger.
Adjustments may be possible if TDS credit is available.

Suggested Next Steps:

Write a formal letter/application to the jurisdictional GST Commissioner requesting rectification and explaining facts.
File an appeal or revision if the order adversely affects you and the time is not barred.
Seek legal advice if needed to file writ petition or approach GST Appellate Tribunal.
Monitor your GST portal ledger for TDS credit and recovery status.