Mandatory show cause notice under GST demand proceedings is essential; DRC-01 summary cannot replace statutory notice.

A demand order under the Assam GST Act cannot stand where the proceedings were initiated only by Form GST DRC-01 with an attachment and no proper prior show cause notice was served. The statutory notice under Section 73(1) is the mandatory initiating step; the attached determination of tax functions only as a statement under Section 73(3) and cannot replace that notice. Because compliance with the sequence prescribed by Section 73 and Rule 142 is a condition precedent to a valid order under Section 73(9), the impugned demand was unsustainable and was set aside.

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Issues: Whether an order of demand under Section 73 of the Assam Goods and Services Tax Act, 2017 is sustainable when no proper prior show cause notice is issued and the proceeding is initiated only through a summary in Form GST DRC-01 with an attachment of determination of tax.

Analysis: The notice contemplated by Section 73(1) is the mandatory initiating step for proceedings under Section 73, while the attachment containing the determination of tax corresponds to a statement under Section 73(3) and cannot substitute the required show cause notice. The summary in Form GST DRC-01 is only an electronic summary and does not dispense with the statutory requirement of service of a proper notice by the proper officer. Compliance with the statutory sequence under Section 73 and Rule 142 is a condition precedent to a valid order under Section 73(9).

Conclusion: The impugned order was held unsustainable in law and was set aside and quashed because the mandatory prior show cause notice had not been issued.

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