Mandatory show cause notice before summary demand order; absence of Form DRC-01 vitiated the demand and required fresh hearing.

A summary demand order in Form DRC-07 could not be sustained where the prescribed prior notice in Form DRC-01 had not been issued. The High Court held that the absence of the mandatory show cause notice and opportunity to reply and be heard rendered the order contrary to law. It set aside the impugned demand order and remitted the matter for fresh consideration after service of notice, receipt of the taxpayer's reply, and a personal hearing.

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Issues: Whether a summary order in Form DRC-07 could be sustained without prior issuance of notice in Form DRC-01, and whether the petitioner was entitled to an opportunity to file a reply and be heard afresh.

Analysis: The respondent had issued a notice in Form DRC-01A and then proceeded to pass a summary order in Form DRC-07 without issuing Form DRC-01. The absence of the mandatory notice before passing the summary order rendered the contrary to law. The petitioner was therefore entitled to have the matter reconsidered after filing a reply and after being given notice and personal hearing.

Conclusion: The impugned order was set aside, and the matter was remitted for fresh consideration after receipt of the petitioner's reply and issuance of notice and hearing.

Final Conclusion: The petitioner succeeded in getting the summary demand order annulled, and the dispute was sent back for fresh adjudication in accordance with law.

Ratio Decidendi: A summary demand order cannot be sustained unless the prescribed show cause notice procedure and opportunity of hearing are first complied with.

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