2023 (9) TMI 1331 - HC - GST

Validity of SCN - summary has not been issued in the requisite form - Section 74 of the Central Goods and Services Tax Act, 2017 - HELD THAT - Although the summary in the electronic form is required to be furnished along with the show cause notice, furnishing of the said summary at this stage would be substantial compliance with the said provisions. The present petition is disposed of with the direction to the proper officer to issue a summary of the notice and demands electronically, in FORM GST DRC-01 FORM GST DRC-02 as expeditiously as possible and preferably within a period of one week from date.

Summary

Issues involved:
The petitioner filed a petition seeking a writ to set aside/quash an impugned show cause notice for non-compliance of CGST rules and to restrain the respondent from proceeding with adjudication during the pendency of the petition.

Summary of Judgment:

Issue 1: Compliance with Rule 142(1) of CGST Rules
The petitioner received a show cause notice proposing a penalty, but the summary of the proposed demand was not communicated electronically in FORM GST DRC-01 & FORM GST DRC-02 as required under Rule 142(1) of the CGST Rules. The Rule mandates the proper officer to serve a summary electronically along with the notice issued under specified sections of the CGST Act. The show cause notice indicated it was issued under Section 74(1) of the CGST Act. The respondents acknowledged the non-issuance of the summary in the required form and assured compliance. The court held that furnishing the summary at this stage would constitute substantial compliance with the provisions. The petition was disposed of with a direction for the proper officer to issue the summary electronically within one week.

This judgment emphasizes the importance of complying with procedural requirements under the CGST Rules, specifically regarding the issuance of summaries along with show cause notices to ensure transparency and procedural fairness in tax proceedings.