Proper show cause notice under GST is mandatory; assessment orders quashed for breach of natural justice

Assessment orders under the Tamil Nadu GST Act, 2017 were challenged on the ground that DRC-01A and DRC-01 intimation had been issued without a proper show cause notice. The Madras HC held that the orders had been passed without compliance with the requirement of a valid show cause notice and in breach of natural justice. The impugned orders were quashed and treated as an addendum to the DRC-01 notice, with the petitioner directed to file a reply within 30 days and the respondent directed to complete the proceedings within three months.

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Issues: Whether the assessment orders passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 were liable to be quashed for want of a proper show cause notice and violation of natural justice.

Analysis: The petitioner challenged the impugned orders on the ground that intimation in DRC-01A and DRC-01 had been issued, but the DRC-01 did not accompany a show cause notice. The Court found that the orders had been passed without compliance with the requirement of a proper show cause notice and, therefore, in violation of the principles of natural justice.

Conclusion: The impugned orders were quashed and treated as an addendum to the notice in DRC-01. The petitioner was directed to file a reply within 30 days and the respondent was directed to complete the proceedings thereafter within three months.

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