Prolay Dey Sarkar Vs State of Assam And 2 Ors (Gauhati High Court)
Summary : In Prolay Dey Sarkar v. State of Assam and 2 Ors, the Gauhati High Court examined the validity of an order issued under Section 73 of the Assam Goods and Services Tax Act, 2017 (“AGST Act”) without the issuance of a proper show cause notice (SCN) as mandated by law. The petitioner, engaged in the confectionary business under the name M/s Maa Laxmi Enterprise and registered under GST, challenged the order dated 18 April 2024 passed by the tax authorities, contending that only a summary of the show cause notice in Form GST DRC-01 was served instead of a detailed notice under Section 73(1) of the AGST Act read with Rule 142(1)(a).
The petitioner argued that the absence of a proper and prior SCN rendered the order invalid. The Court examined the statutory provisions of Section 73 of the CGST Act, 2017 (parimateria to Section 73 of the AGST Act) and Rule 142(1), which stipulate that a proper officer must issue a detailed SCN requiring the taxpayer to show cause as to why the specified amount of tax, interest, and penalty should not be paid. Rule 142(1) further requires that a summary of such notice be issued electronically in Form GST DRC-01 in addition to the main notice.
