Order to Be Set Aside as Only Summary Notice Was Issued Without Issuing Proper and Prior SCN | HC

Case Details: Maverick Technologies vs. State of Assam - [2025] 172 taxmann.com 522 (Gauhati)

Judiciary and Counsel Details

• Manish Choudhury, J.
• R S Mishra, A K Gupta, Ms M Nirola, R K Mahanta for the Petitioner.
• B. Choudhury, for the Respondent.

Facts of the Case

The assessee challenged the order issued under Section 73 of the Assam Goods and Services Tax Act, 2017 (AGST Act) on the ground that no proper and prior show cause notice (SCN), as mandated under Section 73(1), was issued. Instead, the department merely issued an attachment to the determination of tax under Section 73(3) along with a summary of the SCN in Form GST DRC-01. The assessee contended that such issuance was not in compliance with Section 73(1) of the AGST Act and Rule 142(1) of the AGST Rules. Consequently, the assessee sought to set aside the impugned order on the basis that the statutory requirement of serving a valid SCN before adjudication was not met.

High Court Held

The Hon’ble High Court held that the non-issuance of a proper and prior SCN and the mere issuance of a summary SCN along with an attachment to the determination of tax do not satisfy the mandatory requirements of Section 73(1) of the AGST Act and Rule 142(1) of the AGST Rules. The court emphasized that compliance with the procedural safeguards laid down in sub-sections (1) to (8) and (10) to (11) of Section 73, along with sub-rule (1) of Rule 142, is a condition precedent for rendering an order under Section 73(9) valid. In the absence of a duly issued SCN, the adjudication process was vitiated, rendering the impugned order legally unsustainable. Accordingly, the court decided in favour of the assessee and set aside the impugned order.

List of Cases Reviewed

• Construction Catalysers Pvt. Ltd. v. State of Assam & Ors., W.P.[C] No. 3912/2024, dated 26-9-2024, followed