Topic
Gauhati High Court rules that a summary notice in Form GST DRC-01 cannot replace the statutory Show Cause Notice under Section 73 of the AGST Act. The court invalidated all consequential actions, including registration suspension, emphasizing strict adherence to procedural fairness in tax proceedings.
The Punjab & Haryana High Court ruled that failure to provide a personal hearing under Section 75(4) of the CGST Act renders an adjudication order void, even if the assessee does not respond to the show cause notice. This decision reinforces the principle of natural justice in tax proceedings, impacting all GST adjudications where procedural compliance is contested.
The Gauhati High Court has ruled that a show cause notice under Section 74 of the NGST Act cannot be issued solely for non-payment of tax; it must explicitly allege fraud or suppression of facts to trigger penal liability. This reinforces procedural fairness and prevents arbitrary tax enforcement, protecting businesses from punitive action without statutory grounds.