Top Stories Mere Summary of SCN in GST DRC-01 Inadequate; Proper Officer to issue SCN, Statement and Order u/s 73: Gauhati HC [Read Order] The Gauhati High Court assessed the provisions of Section 73 of the CGST Act, 2017 while adjudging the constituents of a valid Order. By Avinash Kurungot – On December 10, 2024 12:50 pm – 2 mins read The Gauhati High Court shed light on the provisions of Section 73 of the Assam Goods and Services Tax Act, 2017, (AGST Act) affirming that a summary of the purported show-cause notice (SCN) in GST DRC-01 shall not suffice to effectuate an order under Section 73 of the Act, and that the Proper Officer is required to first issue a SCN, statement under Section 73(3) and then pass an Order under Section 73(9) of the AGST Act.

Udit Tibrewal, an Assam-based individual involved in the trade and supply of mobile phones, operating under the business name of ‘High Tech Marketing’ had filed a writ petition before the Gauhati High Court assailing an Order passed by fourth Respondent – Commercial Tax Officer (Supdt. Of Taxes), Tezpur-2 citing grounds that no proper and prior SCN as per Section 73(1) of the AGST Act had been served upon the Petitioner. Become a PF & ESIC expert with our comprehensive course – Enroll Now Advocates A. Goyal and A. Choudhury, appearing for the Petitioner submitted before the High Court that the Petitioner had only been served with a Summary of Show Cause Notice in Form GST DRC-01 in contravention of Section 73 read with Rule 142(1)(a) of the AGST Act.

The counsel referred to the decision of a coordinate Bench of the Gauhati High Court in Construction Catalysers Private Limited Vs. The State Of Assam And 2 Ors (2024) claiming the case to have discussed similar issues to the case at hand. B. Gogoi, Standing Counsel representing the Finance & Taxation Department, also acceded that some of the observations of the Court in Construction Catalysers would apply to the present case as well. Become a PF & ESIC expert with our comprehensive course – Enroll Now The Single-Judge Bench of the Gauhati High Court presided over by Justice Manish Choudhury observed that there is no dispute regarding the fact that no proper and prior SCN had been issued by the Department towards the Petitioner as required under Section 73(1) of the AGST Act. Referring to the decision of the coordinate Bench, the Gauhati High Court observed that Section 73 of the AGST mandates an SCN, statement under Section 73(1) as well as Order under Section 73(9) of the AGST Act, all to be issued by the Proper Officer in order to effectuate Order passed under Section 73(9).

Become a PF & ESIC expert with our comprehensive course – Enroll Now Observing that the summary of SCN in Form GST DRC-01 and Attachment to Determination of Tax is not adequate, the High Court proceeded to set aside the Order by the Revenue with the direction that the Revenue may pursue the proceedings by complying with the provisions of Section 73(1) and other ancillary legal provisions.