Shubham Gupta Vs Additional Commissioner, Central Tax
Date: September 20, 2023
Subject Matter
Notice issued u/s 74 of the CGST Act is required to be accompanied by a summary thereof, electronically in FORM GST DRC-01 & FORM GST DRC-02.
Summary
The case law involves a petition filed by the petitioner challenging a show cause notice issued under Section 74(1) of the Central Goods and Services Tax Act, 2017. The petitioner's grievance was that although it received the show-cause notice proposing the imposition of a penalty, the summary of the proposed demand was not communicated electronically in the required forms, as stipulated under Rule 142(1) of the Central Goods and Services Tax Rules, 2017. The respondents acknowledged the deficiency and conceded that the proper officer would issue the summary in compliance with the provisions. The court held that the furnishing of the summary at that stage would be considered substantial compliance and disposed of the petition with a direction to the proper officer to issue the summary of the notice and demands electronically within a specified timeframe.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
2. The learned counsel appearing for the respondents accepts notice.
3. The petitioner has filed the present petition, inter alia, praying as under: –
“(i) Issue a Writ, Order Or Directions In A Nature Of Certiorari To Set A Side /Quash The Impugned Show Cause Notice File NO. DGGI/DZU/GR-D/INV/822019-20 DIN NO. 2023 08 DNN 1000021742B SHOW CAUSE NOTICE DATED- 02.08.2023 issued by respondent no. 2 to the satisfaction of respondent no.1 for non compliance of rule 142 (1) (a) and rule 142 (1) (a) of the CGST rules 2017
(ii) Issue a appropriate Writ OF prohibition/ order or directions restraining the respondent no. 1 from proceeding with the adjudication proceedings of the impugned show cause notice file no. DGGI/DZU/GR-D/INV/822019-20 DIN NO. 2023 08 DNN 1000021742B SHOW cause notice dated- 02.08.2023 during the pendency of the present writ petition.”
4. It is the petitioner’s grievance that although it has received the show cause notice dated 02.08.2023 proposing imposition of penalty, the summary of the proposed demand has not been communicated electronically in FORM GST DRC-01 & FORM GST DRC-02 as required under Rule 142(1) of the Central Goods and Services Tax Rules, 2017 (hereafter ‘the CGST Rules’).
5. The Rule 142(1) of the CGST Rules reads as under: –
“142. Notice and order for demand of amounts payable under the Act – (1) The proper officer shall serve, along with the
(a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of Section 73 or sub-section (3) of Section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.”
6. Any notice issued under the relevant sections including Section 74 of the Central Goods and Services Tax Act, 2017 (hereafter ‘the CGST Act’) is required to be accompanied by a summary thereof, electronically in FORM GST DRC-01 & FORM GST DRC-02. The show cause notice dated 02.08.2023 indicates that it has been issued under Section 74(1) of the CGST Act.
7. The learned counsel appearing for the respondents submits that a summary has not been issued in the requisite form and that the proper officer shall issue the same in compliance with the said provisions.
8. Although the summary in the electronic form is required to be furnished along with the show cause notice, we are of the view that furnishing of the said summary at this stage would be substantial compliance with the said provisions.
9. In view of the above, the present petition is disposed of with the direction to the proper officer to issue a summary of the notice and demands electronically, in FORM GST DRC-01 & FORM GST DRC-02 as expeditiously as possible and preferably within a period of one week from date.
10. The petition is disposed of in the aforesaid terms.