Show Cause Notice requirements: electronic authentication and a personal hearing are required; unauthenticated orders are invalid.

Show cause notices under the tax code must be separately and validly issued by the Proper Officer and cannot be replaced by summaries or attached determinations; summaries in FORM GST DRC-01/DRC-07 and attached statements lack independent issuance and electronic authentication and therefore are not legally effective as SCNs or orders. Electronic/digital authentication of notices, certificates and orders is required to preserve validity. An adverse order passed without affording the affected party a personal hearing violates the requirement to grant hearing and principles of natural justice; the impugned order was set aside and fresh proceedings may be initiated subject to limitation adjustments.

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Issues: (i) Whether show cause notices were issued prior to passing the impugned order under Section 73(9) of the Act; (ii) Whether the determination of tax and the documents attached to the summaries in FORM GST DRC-01 and GST DRC-07 can be treated as valid show cause notice and order respectively; (iii) Whether the impugned orders under Section 73(9) conform to Section 75(4) and principles of natural justice.

Issue (i): Whether show cause notices were issued prior to passing the impugned order under Section 73(9) of the Act?

Analysis: Section 73 confers power to issue a show cause notice in specified circumstances and contemplates a separate SCN and statement of determination. Rule 142 requires that a summary in FORM GST DRC-01 accompany notices issued under Section 73, but does not dispense with the requirement of issuing the primary SCN and the statement under Section 73(3). The record shows only summaries and attached determinations; no independently issued and duly authenticated SCN appears on the record.

Conclusion: No. A proper show cause notice under Section 73(1) was not issued prior to passing the impugned order.

Issue (ii): Whether the determination of tax and the documents attached to the summaries in FORM GST DRC-01 and GST DRC-07 can be treated as valid show cause notice and order respectively?

Analysis: A statement under Section 73(3) and an attached tax determination cannot substitute for a SCN under Section 73(1). Rule 26(3) requires electronic issuance with digital or e-signature for notices, certificates and orders; the attachments lack proper authentication by the Proper Officer. Precedents confirm that unsigned or unauthenticated documents lose legal efficacy and cannot be treated as valid SCNs or orders. Where a regulatory gap exists in demand and recovery chapters, Rule 26(3) authentication requirements apply by default to preserve validity.

Conclusion: The attached determinations and summaries do not constitute a valid show cause notice or lawful order; the attachments are not legally effective as SCNs or orders.

Issue (iii): Whether the impugned orders under Section 73(9) conform to Section 75(4) and principles of natural justice?

Analysis: Section 75(4) mandates an opportunity of hearing when a written request is made or when an adverse decision is contemplated. The summaries left the personal hearing fields blank and no personal hearing was afforded before passing the adverse order. Passing an adverse order without granting hearing where an adverse decision is contemplated defeats the statutory safeguard and violates natural justice.

Conclusion: The impugned orders do not conform to Section 75(4) and infringe principles of natural justice.

Final Conclusion: The impugned order is set aside for lack of a proper show cause notice, absence of required authentication, and failure to grant opportunity of hearing; respondents are permitted to initiate fresh proceedings in conformity with statutory requirements and subject to exclusion of the specified period from limitation computation.

Ratio Decidendi: A summary in FORM GST DRC-01 or an attached determination cannot replace a statutorily mandated show cause notice; notices, statements and orders under Section 73 must be issued by the Proper Officer and duly authenticated by digital or e-signature as required by Rule 26(3), and an opportunity of hearing must be afforded when an adverse decision is contemplated as required by Section 75(4).

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