Case Law Details
Shubham Gupta Vs Additional Commissioner/Joint Commissioner CGST, and Anr. (Delhi High Court)
Introduction: The Delhi High Court recently issued a judgment in the case of Shubham Gupta versus Additional Commissioner/Joint Commissioner CGST, and Anr. The petitioner sought to challenge a show cause notice dated 02.08.2023, arguing non-compliance with Rule 142(1) of the CGST Rules.
Detailed Analysis: The petitioner contended that although a show cause notice proposing a penalty had been received, the electronic communication of the summary of the proposed demand, as required by Rule 142(1) of the Central Goods and Services Tax Rules, 2017 (CGST Rules), had not been provided in FORM GST DRC-01 & FORM GST DRC-02.
The relevant rule, Rule 142(1), mandates the proper officer to serve a summary electronically, along with the notice issued under specific sections of the CGST Act. In this case, the show cause notice dated 02.08.2023 was issued under Section 74(1) of the CGST Act.
In response, the counsel for the respondents admitted to the absence of the required summary and assured that the proper officer would comply with the provisions. Despite the deficiency, the court, considering it substantial compliance, directed the proper officer to issue the summary electronically in FORM GST DRC-01 & FORM GST DRC-02 promptly, preferably within a week.
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