2023 (12) TMI 558 - HC - GST

Procedural Defects in GST Show Cause Notice Highlight Critical Electronic Form Requirements Under Section 74

Delhi HC addressed procedural non-compliance in a GST show cause notice under Section 74. The court found the notice defective for not including mandatory ... Validity of SCN issued - noncompliance of rule 142 (1) (a) and rule 142 (1A) of the CGST rules 2017 - seeking restraint from proceeding with the adjudication proceedings of the impugned SCN during the pendency of the present writ petition - HELD THAT:- The present petition is disposed of by directing the proper officer to issue 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 today, if not already done. Petition disposed off. Issues Involved:The issues involved in the judgment are the issuance of a show cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 without accompanying the required summary electronically in FORM GST DRC-01 & FORM GST DRC-02 as mandated by Rule 142(1) of the CGST Rules 2017.Judgment Details:Issue 1: Compliance with Rule 142(1) of the CGST Rules 2017The petitioner filed a petition seeking a Writ of Certiorari to set aside/quash a show cause notice issued under Section 74(1) of the CGST Act for non-compliance with Rule 142(1) (a) and Rule 142(1A) of the CGST Rules 2017. The petitioner contended that the notice did not include the required summary electronically in FORM GST DRC-01 & FORM GST DRC-02 as per Rule 142(1). The court noted that the show cause notice was indeed issued without the necessary summary as mandated by the rules. The respondents accepted the oversight and agreed to comply with the provisions. The court directed the proper officer to issue the summary electronically in the prescribed forms within one week from the date of the judgment to ensure compliance with the rules.Conclusion:The High Court of Delhi, in this judgment, addressed the non-compliance of Rule 142(1) of the CGST Rules 2017 in the issuance of a show cause notice under Section 74(1) of the CGST Act. The court directed the proper officer to rectify the oversight by issuing the required summary electronically in FORM GST DRC-01 & FORM GST DRC-02 within a week to ensure adherence to the statutory provisions.