Facts of the Case: The petitioner was issued a Summary of SCN in Form GST DRC-01 for FY 2018–19. An attachment containing a tax determination statement was uploaded, but no proper SCN under Section 73(1) was served. An order in Form GST DRC-07 was passed, alleging failure to pay within 30 days.
Both attachments to DRC-01 and DRC-07 were unsigned, bearing only “Sd-Proper Officer.” No date of personal hearing was mentioned in the DRC-01 summary (field marked “NA”). Thus, the Petitioner challenged the proceedings for violation of Section 73, Rule 142, Rule 26(3), and Section 75(4).
Issue: Whether the statement of tax determination attached to DRC-01 can be treated as a valid SCN under Section 73(1). Whether unsigned attachments to DRC-01 and DRC-07 satisfy authentication requirements under Rule 26(3). Whether passing the impugned order without a personal hearing violates Section 75(4) and principles of natural justice.
Held that:
The Court held that the statement under Section 73(3) or a tax determination sheet cannot substitute the mandatory SCN under Section 73(1). The summary in DRC-01 is only supplementary and cannot replace the substantive SCN.
Further, stated that under Rule 26(3), notices and orders must be digitally signed/e-signed. Unsigned attachments are unenforceable. The SCN summary mentioned a reply date but no personal hearing. Section 75(4) mandates a hearing both when a written request is made or when an adverse decision is contemplated. Passing an adverse order without hearing renders the safeguard nugatory.
Consequently, the impugned order was quashed. However, liberty was granted to the Department to initiate de novo proceedings under Section 73, with limitation extended by excluding the period from the issuance of the defective SCN to the service of this judgment.
Case Name: Suhel Ahmed And Anr. M/s. HRD Commercial And Industrial Security Force Pvt. Ltd. Versus The Union Of India, The State Of Assam, The Commissioner Of Taxes Guwahati, The Assistant Commissioner Of State Tax Assam, The Central Board Of Indirect Taxes And Customs, The Chairperson Goods And Services Tax Council New Delhi dated 05.09.2025.
To read the complete judgment 2025 Taxo.online 2205
