Order Date – 24 January 2023

Parties: Santosh Kumar Roy Vs The State of Jharkhand, The Commissioner of State Taxes, The Deputy Commissioner of State Taxes, and The State Tax Officer

Facts –

• The Petitioner, Santosh Kumar Roy, is engaged in a construction work and is a civil contractor.
• On 9.2.2021 a notice in FORM ASMT-10 was issued and since the petitioner did not reply to the said ASMT-10, DRC 01A was issued on 26.10.2021. Thereafter, on 7.1.2022 a show cause notice was issued along with summary of show cause in Form DRC 01 of even date, however, the petitioner did not send the reply and finally DRC 07 was issued as per Rule 142 (5) on 9.2.2022. 

Issue –

• Whether the show cause notice and summary show cause notice are in order?

Order –

• The Hon’ble High Court held that the show cause notice dated 7.1.2022 appears to be issued in a format without striking out of irrelevant particulars thus the same is vague and does not spell out clearly the contravention for which the petitioner is charged. It is in fact worse than summary of show cause notice in Form GST DRC-01 of the same date.
• It further transpires that the Deputy Commissioner Deoghar had proceeded to issue of summary of order in Form GST DRC 07 on 9.2.2022 without any adjudication order.  Then issued DRC-07 on 9.2.2022 without giving any further opportunity which is certainly beyond the provisions of law. Now it is well settled that the show cause notice issued under Section 73(1) of the Act is not mere a formality.
• Hence the show cause notice and summary show cause notices are quashed and set aside and directed to issue a fresh.
• Writ petition allowed.