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.
Conclusion: The Delhi High Court disposed of the petition with a directive to the proper officer to expedite the issuance of the summary of the notice and demands electronically, in FORM GST DRC-01 & FORM GST DRC-02. This judgment highlights the importance of compliance with procedural requirements under CGST Rules, emphasizing the necessity of providing a summary along with relevant notices. The decision ensures fairness in adjudication proceedings and upholds the principles of natural justice.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
2. The learned counsel appearing for the respondents accepts notice.
3. The petitioner has filed the present petition, inter alia, praying as under: –
“(i) Issue a Writ, Order Or Directions In A Nature Of Certiorari To Set A Side /Quash The Impugned Show Cause Notice File NO. DGGI/DZU/GR-D/INV/822019-20 DIN NO. 2023 08 DNN 1000021742B SHOW CAUSE NOTICE DATED- 02.08.2023 issued by respondent no. 2 to the satisfaction of respondent no.1 for non compliance of rule 142 (1) (a) and rule 142 (1) (a) of the CGST rules 2017
(ii) Issue a appropriate Writ OF prohibition/ order or directions restraining the respondent no. 1 from proceeding with the adjudication proceedings of the impugned show cause notice file no. DGGI/DZU/GR-D/INV/822019-20 DIN NO. 2023 08 DNN 1000021742B SHOW cause notice dated- 02.08.2023 during the pendency of the present writ petition.”
4. It is the petitioner’s grievance that although it has received the show cause notice dated 02.08.2023 proposing imposition of penalty, the summary of the proposed demand has not been communicated electronically in FORM GST DRC-01 & FORM GST DRC-02 as required under Rule 142(1) of the Central Goods and Services Tax Rules, 2017 (hereafter ‘the CGST Rules’).
5. The Rule 142(1) of the CGST Rules reads as under: –
“142. Notice and order for demand of amounts payable under the Act – (1) The proper officer shall serve, along with the
(a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of Section 73 or sub-section (3) of Section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.”
6. Any notice issued under the relevant sections including Section 74 of the Central Goods and Services Tax Act, 2017 (hereafter ‘the CGST Act’) is required to be accompanied by a summary thereof, electronically in FORM GST DRC-01 & FORM GST DRC-02. The show cause notice dated 02.08.2023 indicates that it has been issued under Section 74(1) of the CGST Act.
7. The learned counsel appearing for the respondents submits that a summary has not been issued in the requisite form and that the proper officer shall issue the same in compliance with the said provisions.
8. Although the summary in the electronic form is required to be furnished along with the show cause notice, we are of the view that furnishing of the said summary at this stage would be substantial compliance with the said provisions.
9. In view of the above, the present petition is disposed of with the direction to the proper officer to issue a summary of the notice and demands electronically, in FORM GST DRC-01 & FORM GST DRC-02 as expeditiously as possible and preferably within a period of one week from date.
10. The petition is disposed of in the aforesaid terms.
