The Hon’ble Calcutta High Court in the case of M/s. Duttcon Consultant and Engineers Private Limited v. Assistant Commissioner of State Tax, Shyambazar Charge & Ors. [WPA No. 24188 of 2025, order dated December 09, 2025] held summary Form GST DRC-01 show cause notice and DRC-07 adjudication order bereft of relevant facts/reasons violate mandatory Section 75(6) WBGST/CGST Act requirement for quasi-judicial orders, “additional notices and orders” portal tab upload improper service per precedents, no opportunity of hearing under Section 75(4) despite adverse decision are liable to be set aside.
Facts:
M/s. Duttcon Consultant and Engineers Private Limited (“the Petitioner”) received summary Form GST DRC-01 SCN dated June 13, 2024 and DRC-07 order dated July 15, 2024 under Section 73 WBGST/CGST Act, 2017 both lacking details/facts enabling response, unaware of proceedings as uploaded under GST portal “additional notices and orders” tab, discovered via notice under section 79(1)(c) read with Rule 145(1) WBGST Act/Rules to bank.
Assistant Commissioner of State Tax (“the Respondents”) issued summary Form GST DRC-01 SCN dated June 13, 2024, concluded ex parte proceedings and communicated summary DRC-07 order dated July 15, 2024 bereft of facts/reasons.
The Petitioner contended SCN only summary DRC-01 lacks details preventing response; ex parte DRC-07 summary lacks Section 75(6) facts/basis and upload on the portal in the “additional notices and orders” tab to be improper service.
Aggrieved by the same the Petitioner approached the Court by way of WPA No. 24188 of 2025.
Issue:
Whether summary Form DRC-01 SCN and DRC-07 order lacking facts/reasons, served via GST portal “additional notices and orders” tab comply with Sections 73/75 WBGST Act?
Held:
The Hon’ble Calcutta High Court in WPA No. 24188 of 2025 held as under:
- Noted that, the Petitioner assails summary Form GST DRC-01 SCN dated June 13, 2024 and summary DRC-07 order dated July 15, 2024 under Section 73 WBGST/CGST Act, 2017; unaware till garnishee u/s 79(1)(c) r/w Rule 145(1) to bank as uploaded under “additional notices and orders” tab.
- Held that, Section 75(6) mandates proper officer set out relevant facts/basis of decision in adjudication order, quasi-judicial and even administrative orders informed by reason.
- Observed that, communicated order summary form bereft of detail/reason and it is settled law that any order without reasons is a nullity especially with adverse consequences and set aside impugned order dated July 15, 2024
Our comments:
Calcutta HC in Sankar Agarwala v. Joint Commissioner CGST Siliguri Appeal Commissionerate [W.P.A. No. 2116 of 2025] and the division bench judgment in Ram Kumar Sinhal v. State of West Bengal [(M.A.T. No. 53 of 2025] holding that notices/orders via GST portal “additional notices and orders” tab is improper service as not easily accessible unlike normal tab and is not proper communication u/s 73(1) WBGST Act and CGST Rules.
Relevant Provisions:
Section 75(6) of the CGST Act, 2017
“75. General provisions relating to determination of tax.-
(1) Where the service of notice or issuance of order is stayed by an order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74 or sub-sections (2) and (7) of section 74A, as the case may be.
(2) Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73.
(2A) Where any Appellate Authority or Appellate Tribunal or court concludes that the penalty under clause (ii) of sub-section (5) of section 74A is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the penalty shall be payable by such person, under clause (i) of sub-section (5) of section 74A.
(3) Where any order is required to be issued in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court, such order shall be issued within two years from the date of communication of the said direction.
(4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing:
Provided that no such adjournment shall be granted for more than three times to a person during the proceedings.
(6) The proper officer, in his order, shall set out the relevant facts and the basis of his decision.”
Section 73(1) of the CGST Act, 2017
“73. Determination of tax pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts.-
(1) 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.
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