Udit Tibrewal vs. The State Of Assam And 3 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 under Section 73(1) of the Assam Goods and Services Tax Act, 2017, and Rule 142(1)(a) of the Assam Goods and Services Tax Rules, 2017. The Court found that the issuance of a Summary of Show Cause Notice is not a substitute for the mandatory Show Cause Notice required to initiate proceedings under Section 73. The Court relied on its previous judgment in W.P.[C] no. 3912/2024 and others, which had concluded that proceedings initiated without a proper Show Cause Notice are bad in law. Consequently, the impugned order dated 30.12.2023 was found to be unsustainable and was set aside and quashed. The Court granted liberty to the respondent authorities to initiate de novo proceedings under Section 73 if deemed fit, excluding the period from the issuance of the Summary of Show Cause Notices 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, Udit Tibrewal, who operates M/s High Tech Marketing dealing in mobile phones in Tezpur, Assam, challenged an order dated 30.12.2023 passed by the Commercial Tax Officer (respondent no. 4) under Section 73 of the Assam Goods and Services Tax Act, 2017. The petitioner contended that the order was invalid because a proper and prior Show Cause Notice as prescribed by Section 73(1) was not issued. Instead, he was served only with a Summary of Show Cause Notice in Form GST DRC-01, which he argued was not in conformity with Section 73 read with Rule 142(1)(a) of the Act and Rules. The respondents were represented by the State of Assam and its tax authorities.

Key Issues

1. Whether the Summary of Show Cause Notice in Form GST DRC-01, along with an Attachment to Determination of Tax, constitutes a valid Show Cause Notice as contemplated under Section 73(1) of the Assam Goods and Services Tax Act, 2017, and Rule 142(1)(a) of the Assam Goods and Services Tax Rules, 2017? The petitioner argued that a Summary of Show Cause Notice is not a substitute for a proper Show Cause Notice required to initiate proceedings under Section 73(1). He 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. The respondents, represented by the Standing Counsel, submitted that the common judgment in the batch of writ petitions, which had heard all sides, contained observations that would cover the petitioner's case. They did not explicitly argue against the petitioner's contention regarding the validity of the notice.