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The Form GST DRC-01 issued against the petitioner by the respondent authorities on the premises that in the investigation the petitioner had not satisfied the authorities as regards the ITC they had relied upon and therefore, the authorities had arrived at a view that they had relied upon some dubious ITC for the purpose. This court is of the view that ends of justice would be met if an opportunity is given to the petitioner tax payer to appear before the respondent with all relevant materials.

Section 73/74 of the CGST Act, 2017 – Show Cause Notice —-- The petitioner challenge two communications dated 08.10.2021, whereby the notice in the Form GST DRC-01 was issued. The petitioner submitted that the notice could not have been issued on the basis of certain report in print and electronic media. It is alleged that the petitioner had utilized dubious ITC. The respondent counsel submitted that before issuing SCN, summons was issued to the petitioner and since he could not produce all the records, the SCN was issued. Held that:- The Hon’ble High Court granted an opportunity to the petitioner to appear before the respondent with all relevant materials on 08.11.2021. Upon completing the procedure, the authority shall pass a reasoned order either accepting or rejecting the contention of the petitioner.
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