Order dated: 16 July 2025 

Parties:  Air Transport Corporation Assam Pvt. Ltd. & Anr. V. State of Assam & Ors.

Facts -

• The petitioners were issued with summary of show cause notice dated 28.09.2023 without issuing any show cause notice under Section 74 (1) of the CGST Act, 2017 and the summary of the order dated 29.12.2023. 
• It is further case of the petitioners that they have sought for an opportunity of hearing, however, without giving any opportunity of hearing, the summary of the order has been passed.
   

Issue -

• Whether issuing only a summary of SCN (Form GST DRC-01) without a detailed show cause notice under Section 74(1) violates principles of natural justice?
   

Order -

• The single bench of the Hon’ble high court relied on decision of Construction Catalysers Pvt. Ltd vs. State of Assam and others, and held that the attachment to the Summary of Show Cause Notice in GST DRC-01 is only the statement of the determination of tax in terms with Section 73 (3). 
• The said Statement of determination of tax cannot substitute the requirement for issuance of the Show Cause Notice by the Proper Officer in terms with Section 73 (1) of the Central or the State Act.  Under such circumstances, initiation of the proceedings under Section 73 against the petitioners in the instant batch of writ petitions without the Show Cause notice is bad in law and interfered with.
• The present writ petition stands disposed of by setting aside the summary of show cause notice dated 28.09.2023 and the summary of the order dated 29.12.2023