Proper Officer Should Issue a Summary of Notice and Demand Electronically in Form GST DRC-01 & DRC-02 | HC

Case Details: Shubham Gupta v. Additional Commissioner/Joint Commissioner CGST - [2023] 155 taxmann.com 4 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Tushar Rao Gedela, JJ.
  • Akhil K. Maggu, Naveen Malhotra & Ritvik Malhotra, Advs. for the Appellant.
  • Harpreet Singh, Ms Suhani Mathur & Jatin Kumar Gauar , Advs. for the Respondent.

Facts of the Case

In the present case, the petitioner challenged the show cause notice issue by the department and contended that it received show cause notice proposing imposition of penalty, but summary of proposed demand was not communicated electronically in FORM GST DRC-01 and FORM GST DRC-02 as required under Rule 142(1) of CGST Rules, 2017.

High Court Held

The Honorable High Court noted that any notice issued under the relevant sections including Section 74 of CGST Act, 2017 is required to be accompanied by a summary thereof, electronically in FORM GST DRC-01 & FORM GST DRC-02. In the present case, the summary in electronic form was required to be furnished along with show cause notice but the same was not issued.

However, the Court observed that the furnishing of said summary at instant stage would be substantial compliance with legal provisions. Therefore, the Court directed that the proper officer should issue a summary of notice and demand electronically in FORM GST DRC-01 and FORM GST DRC-02.