Sohidul Islam vs. The State Of Assam And 2 Ors.

Held

The Court held that the Summary of Show Cause Notice in Form GST DRC-01, along with the Attachment to Determination of Tax, does not constitute a proper and prior Show Cause Notice as contemplated by Section 73(1) of the Assam Goods and Services Tax Act, 2017, and Rule 142(1) of the Assam Goods and Services Tax Rules, 2017. The Court found that the issuance of only a summary notice is not in compliance with the statutory requirements. The reasoning followed the precedent set in the batch of writ petitions decided on 26.09.2024, which established that a summary notice is not a substitute for a proper Show Cause Notice required to initiate proceedings under Section 73. Consequently, the impugned order dated 25.02.2025 was found to be unsustainable in law. The Court quashed the impugned order. It granted liberty to the respondent authorities to initiate de novo proceedings under Section 73 if deemed fit, in accordance with the observations made in paragraph 29[F] of the common judgment dated 26.09.2024, which included excluding the period from the issuance of the summary notice to the service of the judgment for computing the time limit for passing the order. The Court did not deem it necessary to dilate on other grounds raised by the petitioner.

Facts

The petitioner, Sohdiul Islam, engaged in hardware trading, challenged an order dated 25.02.2025 passed by the Assistant Commissioner of State Tax, Goalpara, under Section 73 of the Assam Goods and Services Tax Act, 2017. The petitioner contended that no proper and prior Show Cause Notice was issued as prescribed by Section 73(1) and Rule 142(1)(a) of the Assam Goods and Services Tax Act, 2017. Instead, he was served with a Summary of Show Cause Notice in Form GST DRC-01. The petitioner relied on a previous judgment of the same High Court in a batch of writ petitions (W.P.[C] no. 3912/2024 and others) which dealt with similar issues regarding the validity of Show Cause Notices and orders under Section 73.

Key Issues

1. Whether the Summary of Show Cause Notice in Form GST DRC-01, issued to the petitioner, constitutes a valid Show Cause Notice as required by Section 73(1) of the Assam Goods and Services Tax Act, 2017, read with Rule 142(1)(a) of the Assam Goods and Services Tax Rules, 2017? Petitioner's Argument: The petitioner argued that a Summary of Show Cause Notice is not a substitute for a proper and prior Show Cause Notice as mandated by Section 73(1) and Rule 142(1)(a). He relied on the judgment in W.P.[C] no. 3912/2024 and others, which held that such summaries do not dispense with the requirement of a proper Show Cause Notice. Revenue's Argument: The learned Standing Counsel for the respondents fairly submitted that the common judgment and order dated 26.09.2024, passed in W.P.[C] no. 3912/2024 and others, would cover the case of the petitioner, implying agreement with the petitioner's contention regarding the procedural defect.