Mere Summary In Form DRC-01 Cannot Substitute The Requirements Of A Proper Show Cause Notice Under Section 73 or 74 – Jharkhand High Court

The Hon’ble High Court of Jharkhand vide its order dated 09.02.2022 in the matter of M/s NKAS Services Private Limited Vs. State of Jharkhand & ors. held that a summary of show cause notice in Form DRC-01 cannot substitute the requirement of a proper show cause notice and the show cause notice being silent on allegations or contraventions of the provisions by the assessee, is not sustainable and hence liable to be quashed.

The petitioner preferred the Writ before the Hon’ble High Court challenging the impugned show cause notice dated 14.06.2021 issued under Section 73 of the Jharkhand Goods and Service Tax (JGST) Act, 2017 and the summary of show cause notice in Form DRC-01 dated 14.06.2021.


  • A show cause notice dated 14.06.2021 with a summary of show cause notice in Form DRC 01 was issued to the petitioner without stating the facts of the case or the grounds alleged showing evasion of payment of tax to the Government.
  • The department issued the impugned show cause notice proposing demand on a payment received by the petitioner.
  • The show cause notice indicates that as per the statistics received from the headquarter/government treasury, it has come to the knowledge of the department that the petitioner has received a payment from the government treasury during the period April 2020 to March 2021 for the works contract services provided and the amount shown in the return is less than the actual amount received to evade the payment of tax.
  • The summary of show cause notice also does not mention that from which government treasury and against which works contract service the petitioner has not disclosed the amount in the return filed under GSTR – 3B.To read more subscribe today:


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