GST--Show Cause Notice
Issuance of Show Cause Notice Without Considering Reply to Pre-Show Cause Notice--Validity of
Vishambhar Dayal
The learned author seeks to make an analytical study of the issue as to whether issuance of show cause notice in Form GST DRC-01without considering the reply to pre-show cause notice in Form GST DRC-01A and without conducting and inquiry or investigation was sustainable in law. The related issue is being discussed in the light of a relevant statutory provisions and a recent Calcutta High Court decision in the case of Diamond Beverages (P.) Ltd., decided on 15-12-2023.
1. Determination of tax under section 73
Section 73 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
As per sub-section (1) of section 73, where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.