Proper GST show cause notice and hearing are mandatory safeguards before adjudication and demand, or proceedings fail.

Under the GST framework, a summary of show cause notice in Form GST DRC-01 could not substitute a proper show cause notice setting out the foundational allegations for valid adjudication. The proceedings were held vitiated because no hearing date was fixed and no effective opportunity of hearing was granted before the demand was raised. Sections 73 and 75 were treated as mandatory safeguards, and non-compliance was found to breach natural justice. The summary of show cause notice, the adjudication order, and the demand summary were therefore set aside.

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Issues: Whether the summary of show cause notice in Form GST DRC-01 could substitute a proper show cause notice; and whether the assessment/adjudication order and demand summary were vitiated for want of opportunity of hearing.

Analysis: The proceedings were held to be vitiated because only a summary of show cause notice had been issued under the GST framework, without a proper notice setting out the foundational allegations in a manner that could validly initiate adjudication. The record also showed that no hearing date was fixed and no effective opportunity of hearing was granted before the demand was raised. In this context, the requirements of Section 73 and the hearing mandate under Section 75 were treated as mandatory safeguards, and the absence of compliance amounted to breach of natural justice.

Conclusion: The challenge was allowed, and the summary of show cause notice, the adjudication order, and the demand summary were set aside.

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