GST DRC-01 cannot be Substitute to Show Cause Notice Issued u/s 73 (1) of CGST Act: Gauhati HC [Read Order]

The Gauhati High Court has held that a summary of the Show Cause Notice in GST DRC-01 is not a substitute to the Show Cause Notice to be issued in terms of Section 73 (1) of the CGST Act as well as the SGST Act.

Aman Gupta, the petitioner/assessee has submitted that the department has issued the summary of show cause notice dated 29.11.2024 without passing any order under Section 73 (1) of the AGST Act, 2017.  The petitioner has sought for an opportunity of hearing, however, without giving any opportunity of hearing, the order has been passed.

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No Allegation of Suppression or Fraud in GST S. 74 SCN: Madras HC directs to Treat S.74 Notice as S. 73 notice Enabling to Avail Amnesty Scheme[Read Order]

In Construction Catalysers Pvt. Ltd. Vs. the State of Assam and 2 others, the court  while setting aside the impugned Orders-in-Original agrants liberty to the respondent authorities to initiate de novo proceedings under Section 73, if deemed fit for the relevant financial year in question. This Court further observes and directs that the period from the date of issuance the Summary of the Show Cause Notices upon the petitioners till the date a certified copy of the instant judgment is served upon the Proper Officer, be excluded while computing the period prescribed for passing of the order under Section 73 (10) of the Central Act as well as the State Act as the case may be.

The bench of  Justice Arun Dev Choudhury has relied on the decision in the case of Construction Catalysers Pvt. Ltd. Vs. the State of Assam in which it was held that the Summary of the Show Cause Notice, the Summary of the Statement under Section 73 (3) and the Summary of the Order passed in terms with Section 73 (9) are to be issued in GST DRC-01, GST DCR-02 and GST DRC-07 respectively.

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The issuance of the Summary of the Show Cause Notice, Summary of the Statement and Summary of the Order do not dispense with the requirement of issuance of a proper Show Cause Notice and Statement as well as Page passing of the Order as per the mandate of Section 73 by the Proper Officer.

The court has ruled that in order to implement the provisions of Section 73, the Proper Officer must issue a Show Cause Notice regardless of whether the Summary of the Show Cause Notice has been issued.  The summary of order and the summary of show cause notice were set aside by the court in its decision to dismiss the writ petition.

To Read the full text of the Order CLICK HERE

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