GST DRC-01 cannot be Substitute to Show Cause Notice Issued u/s 73 (1) of

The Gauhati High Court has delivered a critical judgment on GST procedural law, holding that the issuance of a summary of a show-cause notice in Form GST DRC-01 cannot be considered a substitute for the mandatory, detailed show-cause notice required under Section 73(1) of the CGST Act. The court quashed an order where the tax department had proceeded with adjudication based only on the summary notice, without issuing a formal, comprehensive show-cause notice. This, the court ruled, is a violation of the principles of natural justice as it deprives the assessee of the opportunity to understand the specific allegations and formulate a proper defense. The judgment reinforces that procedural requirements laid down in the statute are not mere formalities. A proper show-cause notice is fundamental to a fair adjudication process, and its absence renders the subsequent proceedings invalid, a significant protection for taxpayers.