Summary Of SCN In GST DRC-01 Cannot Substitute Requirement For Issuance Of SCN U/S 73(1) Of CSGT Act: Gauhati High Court

The Gauhati High Court set aside an order that substituted the requirement for issuing a show-cause notice (SCN) under Section 73(1) of the CGST Act with a summary of the SCN in GST DRC-01. The case dealt with a dispute over the procedural requirement for initiating a GST recovery process. The petitioners argued that a summary did not fulfill the statutory obligation of issuing a full SCN, which is necessary for the taxpayer to prepare a defense. The court agreed with the petitioners, stating that a full and proper SCN must be issued before initiating any recovery actions under GST. The ruling strengthens the procedural safeguards for taxpayers under the GST framework.