Rule 142 of the CGST Rules, 2017 – Pre SCN Consultation - The petitioner challenged the SCN dated 21.05.2020, on the ground that the mandatory requirement of pre-SCN consultation, as embedded in Rule 142 (1A) , has not been adhered to. The counsel also referred to a statutory form GST DRC-01A, that would show that the respondents were required to not only crystalize the tax and cess components, but also the period for which it was claimed. The respondent submitted that because the authorised signatory of the petitioner concern gave a voluntary statement before the concerned officer, it obviated the need for issuing a pre-show cause consultation notice. The court observed that with effect from 15.10.2020, Rule 142(1A) has undergone a change, inasmuch as the word ‘shall’ has been replaced with ‘may’. The SCN was issued prior to 15.10.2020 i.e., on 21.05.2020. Therefore, pre-show cause notice consultation was mandatory under the unamended Rule 142 (1A). A voluntary statement cannot substitute a statutory notice, which is contemplated under Rule 142(1A) of the 2017 Rules.

 Held that:- The Hon’ble High Court allowed the prayer and set aside the SCN dated 21.05.2020. This, however, will not prevent the respondents from issuing a pre-show cause consultation notice, in the prescribed form.