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The impugned show-cause notice issued under section 73 of the CGST Act shows that it completely lacks in fulfilling the ingredients of proper show cause notice. It does not indicate as to the contravention committed by the petitioner. It has been issued in a format without striking off the irrelevant particulars. Accordingly, the impugned notices are quashed.

Section 73 of the CGST Act, 2017—Show Cause Notice - The petitioner challenged Summary Order dated 14.12.2020 under Rule 142, the order in GST DRC-07 levying tax, interest and penalty to the tune of Rs.14,36,896/- on the ground that these have been issued without issuance of any show cause and initiation of adjudication proceedings and without providing of opportunity of hearing. The counsel for the petitioner submitted that his return were scrutinized for the Financial Year 2018-19 and discrepancy of Rs. 6.17 lakhs was found on account of mismatch / difference between GSTR-2A and GSTR-3B which he was asked to explain by notice dated 18.10.2019. The Petitioner replied on 04.11.2019 and claimed that it is only Rs. 44,303/- and not Rs. 6.17 lakhs. However, no response was received from the Department for more than a year. But the petitioner received a Summary of SCN in Form GST DRC-01 dated 20.10.2020 and was asked to reply as to why tax, interest and penalty to the tune of Rs. 14,36,896/- be not imposed upon him. The petitioner furnished its reply on 29.10.2020 requesting the Respondents to re-calculate the difference. However, without taking notice of the reply, a summary order has been issued in Form GST DRC-07 on 14.12.2020 imposing tax, interest and penalty to the tune of Rs. 14,36,896/- on account of excess ITC availed. His Electronic Credit Ledger has been blocked to the extent of Rs. 12,30,238/- on 05.03.2020 and again an amount of Rs. 4,21,698/- was blocked. Such ITC remains blocked for more than a year in teeth of Rule 86A(3) of Rules. The court observed that a perusal of the impugned show-cause notice issued under section 73 shows that it completely lacks in fulfilling the ingredients of proper SCN. It does not indicate as to the contravention committed by the petitioner. It has been issued in a format without striking off the irrelevant particulars. The court relied the case of M/s NKAS Services Private Limited, relating to a similar vague show cause notice issued under section 73 of the Act.

Held that:- The Hon’ble High Court quashed the impugned SCN issued under section 73 and Summary of the SCN issued in Form GST DRC-01 and impugned order.

The impugned show-cause notice issued under section 73 of the CGST Act shows that it completely lacks in fulfilling the ingredients of proper show cause notice. It does not indicate as to the contravention committed by the petitioner. It has been issued in a format without striking off the irrelevant particulars. Accordingly, the impugned notices are quashed.

Held that:- The Hon’ble High Court quashed the impugned SCN issued under section 73 and Summary of the SCN issued in Form GST DRC-01 and impugned order.