2026-VIL-277-GAU
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SGST High Court Cases

GST - Issuance of proper SCN under Section 73(1) of the CGST Act, 2017 – Issue of Summary of Show Cause in GST DRC-01 along with attachment as regards the determination of tax - It is the case of the petitioner that as there was no proper Show Cause Notice attached to the Summary of the Show Cause Notice in the portal - Whether Summary in GST DRC-01 can substitute SCN – HELD - The Summary in GST DRC-01 cannot substitute the proper SCN required under Section 73(1) of the CGST Act. The Act requires the Proper Officer to issue a formal and duly authenticated SCN to initiate proceedings under Section 73. The Statement of tax determination attached to the Summary cannot be treated as a valid SCN - Merely attaching a tax determination order to the Summary in DRC-01 does not amount to valid initiation under Section 73. The Summary is only supplementary to a full SCN, which was not provided in this case, violating the statutory requirements. The respondents have proceeded under the mistaken impression that attaching the determination of tax to the summary constitutes a valid Show Cause Notice - The impugned order is set aside. The respondents are granted liberty to initiate de novo proceedings, if considered appropriate - Writ petition stands allowed - Authentication of documents - Requirement under Rule 26(3) of CGST Rules – HELD - The SCN, Statement, and final Order under Section 73(9) must be issued and passed only by the Proper Officer, as defined under Section 2(91), and these documents must be properly authenticated in accordance with Rule 26(3) of the CGST Rules, 2017. The summaries issued in GST DRC-01, DRC-02, and DRC-07 cannot override or replace the requirement of issuing proper and authenticated primary documents - Opportunity of Hearing - Violation of Section 75(4) – HELD - The impugned order contravenes Section 75(4) of the Act which mandates that a reasonable opportunity of hearing must be provided either when an adverse decision is contemplated or when a written request is made by the assessee. In the present case, although the DRC-01 summary specifies the date for filing a reply, it leaves the field regarding the date and time of personal hearing as "NA". In a situation where no reply is submitted, the Proper Officer cannot proceed to pass an adverse order without granting an opportunity of hearing, as doing so would render the safeguards under Section 75(4) ineffective and violate principles of natural justice.
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