GST Notices And Orders Issued Only In Summary Forms Without Details Are Unsustainable: Calcutta High Court

The Calcutta High Court has quashed a GST adjudication order passed solely through summary online forms, holding that tax liability cannot be imposed without clearly setting out the allegations and reasons as required under law.

A single-judge bench of Justice Om Narayan Rai said the manner in which the proceedings were conducted could not be sustained.

“The order that has been passed and communicated to the petitioner has remained in summary form. It is bereft of any detail and sans any reason. Such an order cannot sustain scrutiny under Article 226 of the Constitution of India,” the court observed.

The case involved a taxpayer who was issued a show cause notice in Form GST DRC-01, a prescribed summary form used under the GST framework to communicate proposed tax liability. In this case, the notice contained no factual particulars or reasons explaining the basis of the proposed demand.

As no details were disclosed in the notice, the taxpayer did not submit a reply. The department thereafter concluded the proceedings ex parte and passed an adjudication order in Form GST DRC-07, which is the prescribed summary form used to communicate the outcome of adjudication. The order, too, did not contain any discussion of facts or reasons.

The taxpayer informed the court that both the summary show cause notice in Form DRC-01 and the adjudication order in Form DRC-07 were uploaded only under the “Additional Notices and Orders” tab on the GST portal. He said he remained unaware of the proceedings until recovery action was initiated and his bank account was attached.

The court noted that Section 75(6) of the Central Goods and Services Tax Act, 2017 mandates that the proper officer must set out the relevant facts and the basis of the decision in the adjudication order.

Justice Rai reiterated that “Even otherwise, any order passed by any quasi judicial authority (and in most of the cases even administrative authority) must be informed by reason.”

The bench also found that no opportunity for a personal hearing was granted to the taxpayer, despite an adverse decision being contemplated. This, the court said, was contrary to Section 75(4) of the CGST Act and the principles of natural justice.

On the issue of delay in approaching the court, the bench accepted the taxpayer's explanation that he had no knowledge of the notice or the order because of the manner in which they were uploaded on the portal. The court relied on an earlier ruling holding that service of notices and orders only by uploading them under the “additional notices and orders” tab on the GST portal is improper.

In view of these findings, the HIgh Court set aside the adjudication order dated July 15, 2024. It directed the tax department to issue a fresh and detailed show cause notice in support of the summary Form DRC-01 within two weeks. The taxpayer will then be given an opportunity to respond, after which the authorities must pass a reasoned order in accordance with law.

The court also directed that the attachment of the taxpayer's bank account be lifted, as it was based on an order that could not be sustained. It clarified that it had not examined the merits of the tax demand and that all issues remain open for consideration afresh by the tax authorities.

Case Title: Duttcon Consultant and Engineers Private Limited v. Assistant Commissioner of State Tax, Shyambazar Charge & Ors.

Citation: 2026 LLBiz HC (CAL) 10

Case Number: WPA/24188/2025

Counsel for Petitioner: Sandip Choraria, Akash Chakraborty, Rishav Manna

Counsel for Respondent: Tanoy Chakraborty, Sumita Shaw, Saptak Sanyal, S. Chatterjee