M/s SARADA REFRIGERATION AND AIR CONDITION & ANR. v. THE STATE OF ASSAM & ORS.

Introduction

The petitioners challenged the Summary of Show Cause Notice (Form GST DRC-01) dated 18.12.2023 and the consequential Order-in-Original dated 08.03.2024, contending that the Department had initiated proceedings under Section 73 without issuing the mandatory statutory Show Cause Notice (SCN). Instead, only a summary in Form GST DRC-01 had been issued.

The petitioners argued that Rule 142(1A) merely requires issuance of a summary of the show cause notice and that such summary cannot substitute the detailed statutory notice mandated under Section 73(1). They relied on the earlier judgment of the Guwahati High Court in Construction Catalysers Private Limited v. State of Assam, wherein it was held that issuance of only DRC-01 is insufficient compliance with Section 73(1).