Summary Of SCN In GST DRC-01 Cannot Substitute Requirement For Issuance Of SCN U/S 73(1) Of CSGT Act: Gauhati High Court
Mehak Dhiman
8 Dec 2024 7:45 PM IST
The Gauhati High Court stated that issuance of summary of Show Cause Notice in GST DRC-01 cannot substitute requirement for issuance of show cause notice under section 73(1) of CSGT Act. The Bench of Justice Manish Choudhury observed that “…….the issuance of the Summary of the Show Cause Notice, Summary of the Statement and Summary of the Order do not dispense with the...
The Gauhati High Court stated that issuance of summary of Show Cause Notice in GST DRC-01 cannot substitute requirement for issuance of show cause notice under section 73(1) of CSGT Act.
The Bench of Justice Manish Choudhury observed that “…….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 passing of the Order as per the mandate of Section 73 by the Proper Officer. As initiation of a proceedings under Section 73 and passing of an order under the same provision have consequences. The Show Cause Notice, Statement as well as the Order are all required to be authenticated in the manner stipulated in Rule 26 [3] of the Rules of 2017.”
In this case, the assessee/petitioner has challenged the Order passed by the Commercial Tax Officer (respondent no.2) under Section 73 of the Assam Goods and Services Tax Act, 2017.
The assessee has challenged the Order 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 assessee was only served with a Summary of Show Cause Notice in Form GST DRC-01.
The bench noted that the 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.
The Show Cause Notice to be issued in terms with Section 73 (1) of the Central Act or State Act cannot be confused with the Statement of the determination of tax to be issued in terms with Section 73 (3) of the Central Act or the State Act, added the bench.
The bench opined that “…….the attachment to the Summary of Show Cause Notice in GST DRC-01 is only the Statement of the determination of tax in terms with Section 73 (3). The said Statement of determination of tax cannot substitute the requirement for issuance of the Show Cause Notice by the Proper Officer in terms with Section 73 (1) of the Central or the State Act. Under such circumstances, initiation of the proceedings under Section 73 against the petitioners/assessee without the Show Cause Notice is bad in law and interfered with.”
In view of the above, the bench allowed the petition.
Case Title: Udit Tibrewal v. The State of Assam & Ors.
Case Number: WP(C)/5233/2024
Counsel for Petitioner/ Assessee: A Goyal
