Facts of the Case

The petitioner, Bitupon Doley, challenged proceedings of the Assistant Commissioner of State Tax, Jorhat-6, alleging that a summary of show cause notice dated 12.12.2023 was issued without any show cause notice under Section 73(1) of the CGST Act, 2017 ever being issued, and a summary of order dated 22.04.2024 was passed without any order under Section 73(9) being passed. The petitioner also complained that no opportunity of hearing was granted despite requesting one. The respondents, in their affidavit, admitted that while a summary of show cause notice existed, no show cause notice under Section 73(1) had in fact been issued.

Issues Involved

  1. Whether the Summary of Show Cause Notice in Form GST DRC-01, issued without an accompanying show cause notice under Section 73(1), satisfies the statutory requirement for initiating proceedings.
  2. Whether a Summary of Order in Form GST DRC-07, issued without a corresponding order under Section 73(9), can sustain a tax demand.

Petitioner's Arguments

  • No show cause notice under Section 73(1) of the CGST Act was ever issued; only a summary of show cause notice in DRC-01 was served.
  • No order under Section 73(9) was passed; only a summary of order was issued.
  • No opportunity of hearing was granted despite the petitioner having sought one, in violation of Section 75(4).
  • The issue stood squarely covered by the Court's earlier ruling in Construction Catalysers Pvt. Ltd. vs. State of Assam (WP(C) No. 3912/2024 and connected matters, dated 26.09.2024).

Respondent's Arguments

  • The respondents filed an affidavit conceding that while a summary of show cause notice existed, no show cause notice in terms of Section 73(1) of the CGST Act had in fact been issued.
  • Both counsel agreed the issue was identical to, and covered by, Construction Catalysers Pvt. Ltd. (supra).

Court Order / Findings

  • Applying the conclusions reached in Construction Catalysers Pvt. Ltd. vs. State of Assam, the Court held that the Summary of Show Cause Notice in GST DRC-01 is not a substitute for the statutory Show Cause Notice under Section 73(1), and that the Statement of determination of tax under Section 73(3) likewise cannot substitute a proper notice.
  • Initiation of proceedings under Section 73 without a proper show cause notice was held bad in law, and the impugned orders were liable to be set aside for violation of Section 75(4) as well, since no opportunity of hearing had been given.
  • The summary of the show cause notice dated 12.12.2023 and the summary of order dated 22.04.2024 were set aside, with liberty to the respondent authorities to initiate de novo proceedings under Section 73 if deemed fit, excluding the period already spent from the date of the summary notice till service of the certified judgment copy while computing limitation under Section 73(10).

Important Clarification

  • A Summary of Show Cause Notice (DRC-01), a Summary of Statement (DRC-02), and a Summary of Order (DRC-07) are all only summaries — they cannot substitute the underlying Show Cause Notice, Statement, and Order required to be independently issued/passed by the Proper Officer under Section 73.
  • Such notices, statements, and orders must additionally be authenticated in the manner prescribed under Rule 26(3) of the CGST Rules.
  • Where proceedings are quashed on this technical ground, courts commonly exclude the intervening period from the Section 73(10) limitation clock, to enable fresh, compliant proceedings.

Sections Involved

  • Section 73(1), CGST Act, 2017 — mandatory show cause notice for non-fraud tax determination.
  • Section 73(9), CGST Act, 2017 — requirement of a reasoned order by the Proper Officer.
  • Section 75(4), CGST Act, 2017 — mandatory opportunity of hearing before an adverse order.

Decision – In Favour of

Assessee. The summary notice and summary order were set aside for want of a proper Section 73(1) notice and denial of hearing, with liberty for de novo proceedings.

Case Details

Court: Gauhati High Court
Case No.: WP(C)/1565/2025
Coram: Hon'ble Mr. Justice Arun Dev Choudhury
Date of Order: 24.06.2025

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