Case Summary
Case Title: Air Transport Corporation Assam Pvt. Ltd. & Anr. v. State of Assam & Ors
Court: Gauhati High Court
Petition No.: WP(C)/471/2025
Date of Judgment: 16.07.2025
Category of Dispute: Validity of GST proceedings – absence of proper show cause notice and violation of natural justice
Relevant Provisions: Sections 73, 74, 75(4), 2(91) of CGST Act, 2017; Rule 26(3) of CGST Rules, 2017
Facts (Para 2–3)
The petitioners, Air Transport Corporation Assam Pvt. Ltd. and its director, challenged the action of the Assistant Commissioner of State Tax, Guwahati, who issued only a summary of show cause notice dated 28.09.2023 and a summary of order dated 29.12.2023, without issuing a proper notice under Section 74(1) of the CGST Act. The petitioners contended that no opportunity of hearing was provided despite their request. The State admitted that no detailed notice under Section 74(1) had been issued, and only the summary was generated.
Questions/Dispute
The key issue was whether a summary of show cause notice (DRC-01) could substitute a valid notice under Section 73(1)/74(1), and whether orders passed without granting a hearing under Section 75(4) could sustain in law.
Observations (Para 4–5, citing Construction Catalysers Pvt. Ltd. v. State of Assam, WP(C)/3912/2024, decided 26.09.2024)
The Court relied on earlier precedent holding that:
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A summary of SCN in Form DRC-01 is not a substitute for the mandatory SCN under Section 73(1) or 74(1).
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The Statement under Section 73(3) attached to the summary cannot replace a proper SCN.
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Only the Proper Officer under Section 2(91) can issue SCNs and pass orders under Section 73(9).
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Proceedings without a proper SCN are bad in law.
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Further, passing an order without giving an opportunity of hearing violates Section 75(4).
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While the orders were quashed, liberty was granted to the department to initiate de novo proceedings under Section 73, with exclusion of limitation for the intervening period.
Judgment (Para 6)
The Gauhati High Court applied the same reasoning as in Construction Catalysers Pvt. Ltd. and set aside both the summary of SCN dated 28.09.2023 and the summary of order dated 29.12.2023. Liberty was granted to the department to initiate fresh proceedings in accordance with law.
Table of Cases Referred
| Case | Court & Citation | Verdict |
|---|---|---|
| Construction Catalysers Pvt. Ltd. v. State of Assam & Ors., WP(C)/3912/2024 (decided 26.09.2024) | Gauhati High Court | Held that summary of SCN under DRC-01 is not a substitute for proper SCN under Section 73(1); proceedings without SCN are invalid; orders quashed but liberty for de novo proceedings granted. |
Between Fine Lines
This ruling reiterates that summary forms like DRC-01 or DRC-07 cannot replace proper show cause notices or orders under GST law. Businesses can challenge demands issued only through summary documents. However, authorities are free to start fresh proceedings, so taxpayers must remain prepared with documentation and legal defenses.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
