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 with Section 73 (1) of the CGST Act as well as the SGST Act.
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 Show Cause Notice and the Statement in terms with Section 73 (1) and 73 (3) of both the Central Act or the State Act respectively are required to be issued only by the Proper Officer as defined in Section 2 (91). Additionally, the order under Section 73 (9) is also required to be passed by the Proper officer. 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. 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 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.
The court has held that 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.
The court disposed of the writ petition by setting aside the summary of order and the summary of show cause notice.
Case Details
Case Title: AMAN GUPTA Versus UOI
Case No.: Case No. : WP(C)/2261/2025
Date: 26.05.2025
Counsel For Petitioner: D SARAF, MR. S S GUPTA
Counsel For Respondent: DY.S.G.I., SC, FINANCE AND TAXATION
