Section 73 of the CGST Act, 2017— Show Cause Notice –- The petitioner sought quashing of the SCN dated 28.08.2020 issued under Section 73 of the Act, for the period April, 2018 to March 2019 and challenged summary of SCN in Form GST DRC-01 and the summary of the order dated 12.12.2020 issued in Form GST DRC-07. The court observed that notices under Section 73(1) is in the standard format and neither any particulars have been struck off, nor specific contravention has been indicated to enable the petitioner to furnish a proper reply to defend itself. The show-cause notices can therefore, be termed as vague. The court placed its reliance upon the decision in the matter of M/s NKAS SERVICES PRIVATE LIMITED, wherein it was held that summary of SCN in Form GST DRC-01 cannot substitute the requirement of a proper SCN under Section 73(1). The Respondents have also not brought on record any adjudication order. Thus the impugned SCN does not fulfill the ingredients of a proper SCN and amounts to violation of principles of natural justice.

Held that:- The Hon’ble High Court quashed the impugned notice and the summary of SCN and Summary of Orders contained in Form GST DRC-07 dated 12.12.2020. Levy of penalty of 100% of tax dues reflected in the Summary of the Order contained in Form GST DRC-07  is also in the teeth of the provisions of Section 73(9) of the Act, wherein while passing an adjudication order, the Proper Officer can levy penalty up to 10% of tax dues only. The above infirmity clearly shows non-application of mind on the part of the respondent.