Proper show cause notice under GST is mandatory before Section 73 proceedings can be sustained.

Proceedings under Section 73 of the CGST Act cannot be sustained unless preceded by a proper show cause notice. The Gauhati HC noted that no prior valid show cause notice had been issued before the demand-cum-show cause notice and consequential order, and the respondents accepted that defect. The impugned notice and order were therefore set aside, and the matter was remanded to the authority to initiate fresh proceedings in accordance with law if so advised.

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Issues: Whether the demand-cum-show cause notice and the consequential order could be sustained when no prior proper show cause notice had been issued under the GST law.

Analysis: The petitioner challenged the demand-cum-show cause notice and the consequential order on the ground that proceedings under Section 73 of the GST law cannot be validly initiated without issuance of a proper show cause notice. The respondents, on instructions, accepted that no prior show cause notice had been issued and requested that the matter be sent back for initiation of proceedings in accordance with law.

Conclusion: The impugned notice and order were set aside, and the matter was remanded to the authority to initiate fresh proceedings, if so advised, in accordance with law.

Ratio Decidendi: Proceedings under Section 73 of the Central Goods and Services Tax Act, 2017 cannot be sustained unless preceded by a proper show cause notice.

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