Summary in GST DRC-01 cannot substitute Section 73(1) SCN requirement: Guwahati HC

MD Shoriful Islam Vs State of Assam And 3 Ors (Guwahati High Court)

Guwahati High Court held 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 CGST/SGST. Accordingly, order based on issuance of summary of the show cause notice is liable to be quashed and set aside.

Facts- The petitioner was issued a Summary of the Show Cause Notice dated 02.05.2024. The petitioner did not reply to the Show Cause Notice in view of the fact that there was no Show Cause Notice attached to the Summary of the Show Cause Notice. Pursuant thereto, the Order dated 29.08.2024 was issued in GST DRC-07. To the said Order uploaded in GST DRC-07, there was an attachment stating the manner in which the determination was made. The reason assigned for passing of the said order was that the taxpayer had not replied or contested the notice, and as such, had been agreed with the terms of the notice. It is relevant to mention that the attachments to both the GST DRC-01 as well as the GST DRC-07 did not contain any signature of the Proper Officer. It is the grievance of the petitioner that the petitioner was not provided with the opportunity of hearing as provided u/s. 75 (4) of the CGST/AGST Act, 2017 before passing of the order dated 29.08.2024. It is further stated that both the Bank Accounts of the petitioner have been freezed and being aggrieved, the writ petition has been filed.