Section 73 of the CGST Act, 2017— Show Cause Notice—Violation of Principle of Natural Justice - The petitioner sought quashing of the SCN dated 12.02.2022 issued under Section 73 of the Act. The counsel for the petitioner submitted that the SCN for the tax period March 2019 is in a format without striking out the irrelevant particulars, is vague and does not spell out the contravention for which the petitioner is charged. He further relied on the judgment passed by this Court in the case of M/s NKAS Services Pvt. Ltd. vs. State of Jharkhand & Ors. The court observed that there won’t be an exaggeration in treating the SCN as vague as it does not spell out the contraventions for which the petitioner is charged. It is worse than the summary of SCN issued under FORM GST DRC-01 Further, without giving any opportunity of hearing, the respondent was in so hurry, that he finally issued summary of order in FORM GST DRC-07 on 17.02.2022, that means just within five days from issuance of show cause. Thus, the foundation of the proceeding suffers from material irregularity and hence not sustainable.

Held that:- The Hon’ble High Court set aside the SCN, summary of SCN in FORM GST DRC-01 and Summary of order dated 17.02.2022. Further, directed that the respondents are at liberty to initiate fresh proceeding from the stage of issuance of SCN in accordance with law.