Summary Of Show-Cause Notice In Form GST DRC-01 Not Substitute Of Requirement Of Show-Cause Notice U/S. 73 (1) CGST Act: Gauahati HC

The Gauhati High Court observed that Summary of Show Cause Notice in Form GST DRC-01 is not the substitute of requirement of Show-Cause Notice under Section-73(1) of the CGST Act.

The Court was considering a Writ-Petition against an order passed by Commercial Tax Officer (Suptd. of Taxes) on the ground that there was no proper and prior Show Cause Notice prescribed under sub-section [1] of Section 73 of the Assam Goods and Services Tax Act, 2017 and the petitioner was only served with a Summary of Show Cause Notice in Form GST DRC-01, which is also not in conformity with Section 73 read with Rule 142[1][a] of the Assam Goods and Services Tax Act, 2017. 

The single-bench of Justice Manish Choudhary observed, "Non-issuance of a proper and prior Show Cause Notice, as contemplated under sub-section [1] of Section 73 of AGST Act, 2017 and issuance of only Summary of Show Cause Notice and Attachment to Determination of Tax cannot be said to be in compliance with sub-section [1] of Section 73 and sub-rule [1] and Rule 142 of the AGST Rules, 2017, a Summary of Show Cause Notice is held to be not a substitute of a Show Cause Notice, contemplated by the provisions of sub-section [1] of Section 73 to set the proceeding in motion."

The Petitioner was represented by Advocate A. Goyal while the Respondent was represented by Senior Counsel, Finance and Taxation.

The Court observed that Summary of the Show Cause Notice in GST DRC-01 is not a substitute to the Show Cause Notice to be issued in terms with Section 73 [1] of the Central Act as well as the State Act. Irrespective of issuance of the Summary of the Show Cause Notice, the Proper Officer has to issue a Show Cause Notice to put the provision of Section 73 into motion.

" From the provisions of Section 73, it emerges that the Show Cause Notice is required to be issued by the proper officer, the statement under Section 73[3] is to be issued by the proper officer as well as the Order under Section 73[9] is required to be issued by the proper officer. Compliance of the provisions contained in sub-section [1] to sub-section [8] and sub-section [10] to sub-section [11] of Section 73 and sub-rule [1] of Rule 142 are conditions precedent to term an Order passed under sub-section [9] of Section 73 as a valid one.," the Court observed.

The Petition was accordingly disposed off.

Cause Title: Udit Tibrewal vs. The State of Assam & Three Others (GAHC010205892024)

Appearances:

Petitioner- Advocate A. Goyal, Advocate A. Choudhury

Respondent- Senior Counsel, Finance and Taxation.

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