Udit Tibrewal Vs State of Assam And 3 Ors. (Gauhati High Court)
Gauhati High Court, in the case of Udit Tibrewal v. State of Assam and Others, addressed the validity of an order issued under Section 73(9) of the Assam Goods and Services Tax (AGST) Act, 2017. The petitioner, a trader in mobile phones, challenged the order dated December 30, 2023, on the grounds that it was based solely on a summary of the show cause notice (SCN) issued in Form GST DRC-01. The petitioner contended that this summary did not fulfill the requirements of a proper SCN under Section 73(1), which mandates a formal notice as a prerequisite for initiating proceedings.
The court scrutinized the procedural compliance under Section 73 and Rule 142 of the AGST Rules, which mirror the provisions of the Central GST Act. It held that the issuance of a summary notice cannot replace the statutory requirement of a formal SCN under Section 73(1). The court emphasized that a proper SCN is essential to activate proceedings and ensure adherence to principles of natural justice. Furthermore, it clarified that the statement of tax determination under Section 73(3), while supplementary, cannot substitute the primary notice mandated under Section 73(1).
