Proper GST show cause notice is mandatory; a DRC-01 summary alone cannot sustain a demand order.

A demand order under Section 73 of the Assam GST Act could not be sustained where the taxpayer received only Form GST DRC-01 summary and an attachment, but no proper prior show cause notice. The statutory scheme requires service of a notice under Section 73(1), any necessary statement under Section 73(3), and then an order under Section 73(9) within time; the DRC-01 summary is only an accompaniment and not a substitute for notice. The order was also unsustainable for non-compliance with the hearing requirement under Section 75(4). The impugned demand was set aside, with liberty to proceed afresh in accordance with law.

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Issues: Whether a demand order under Section 73 of the Assam Goods and Services Tax Act, 2017 can be sustained when no proper and prior show cause notice was issued and the taxpayer was served only with a summary in Form GST DRC-01 and an attachment to determination of tax.

Analysis: The governing scheme under Section 73 requires the proper officer to serve a show cause notice under sub-section (1), followed where applicable by a statement under sub-section (3), and thereafter to pass an order under sub-section (9) within the statutory time limit. Rule 142(1)(a) requires the summary in Form GST DRC-01 to accompany the notice, but the summary is not a substitute for the notice itself. The Court applied the earlier common decision on the same question and held that issuance of only the summary notice and the attachment to determination of tax did not amount to compliance with the statutory preconditions. The impugned order was also found unsustainable for want of proper adherence to the hearing requirements under Section 75(4).

Conclusion: The impugned demand order was illegal and was set aside, with liberty to the authorities to proceed afresh in accordance with law.

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