Ques: ASMT 10 was fgiven for FY 21-22 only. Now departmemnt has issued for 20-21 and 21-22 on 25-09-2025 combine show casue notice u/s 74 . Will this be valid . In SCN alos refereed that ASMT 10 . ISsue was related to ITC as per GSTR3B and reflecting in GSTR2A. What remedy is availbe
Query 2)For FY 21-22 department is asking to pay for non complaicne of Rule 86B. If we pay the same today , 1) Can we this cash balance paid agaiant FY 21-22 Rule 86B liability for discharging current year liability . 2) Do we need to file DRC for cash payment done. 3) IF DRC filed for tax amount then we can not use this cash balacne. What is remedy.

Ans:

Pre-adjudication reply / representation

You may file a detailed reply raising:

1. Procedural defect – FY 2020-21 was never subjected to ASMT-10 scrutiny; reference to ASMT-10 of FY 2021-22 renders notice non-speaking.
2. Violation of Rule 142(1)(a) – if DRC-01 summary not properly served or not segregated year-wise.
3. Vagueness – No separate computation, mismatch details, or documentary linkage provided for FY 2020-21.
4. Natural justice – Combined SCN prevents meaningful reply; each year must be separately detailed.
5. On merits – Explain ITC mismatch (e.g., vendor filing delay, genuine ITC, etc.).

 (B) Writ remedy before High Court

If adjudicating authority proceeds mechanically or refuses to drop proceedings, you can approach High Court seeking quashing of the SCN or order on grounds of:

• Combined vague SCN for two years;
• Absence of foundational scrutiny for FY 2020-21;
• Violation of natural justice / Rule 142.

 Query 2 – If you pay today towards Rule 86B non-compliance for FY 2021-22, you must file Form DRC-03 to close the issue. Once filed, that cash balance is utilised and cannot be reused for other liabilities. The only remedy for re-credit is refund under Section 54 if payment is found erroneous.

Q No.	Query	Legal Answer
1	Can the cash paid today for FY 21-22 (Rule 86B non-compliance) be used to discharge current year liability?	No, not if it is paid through DRC-03 for FY 21-22 — because it becomes utilised for that period. Only un-utilised cash in ledger can be used for any period.
2	Do we need to file DRC-03 for this payment?	Yes, if you are paying voluntarily to regularise FY 21-22 non-compliance; otherwise, there is no formal evidence of payment being made for that year.
3	If DRC-03 is filed, can the same cash balance be reused?	No. Once DRC-03 filed, the amount is adjusted from your ledger. It cannot be re-utilised.
Remedy	For re-credit, you must claim refund u/s 54 (if paid erroneously under wrong head/year) — only if permissible. Otherwise, you cannot use the same cash balance again.