Calcutta HC Rejects GST DRC-01 Notice as Issued Without Thinking Reply

The Calcutta High Court in a judgment, has provided relief to Eden Real Estates Pvt Ltd & Anr in their legal battle against the Senior Joint Commissioner of Revenue. The matter, centered on the opinion of procedural incorrectness in the issuance of a GST show-cause notice (GST DRC-01), highlights the devotion of the Court to sustaining the principles of natural justice.

The GST DRC-01 notice is been contested by Eden Real Estates Pvt Ltd on 29th December 2023, claiming it was furnished in violation of the principles of natural justice.

The main grievance of the applicant was that their detailed reply to a pre-show cause notice was outright overlooked by the WBGST authority, directing to the issuance of the show-cause notice without due consideration.

From both sides, the Court heard arguments, with the counsel of the applicant presenting the overlooked response as an important proof of procedural overlook.

The respondent’s incapability to present the consideration of the applicant’s response before issuing the show-cause notice further weakened the authority’s stance.

Judgment: The Calcutta High Court acknowledged the oversight, set aside the impugned show-cause notice, and remanded the case back to the GST authority. A fresh review of the petitioner’s case is been ordered by the court stressing the need for the detailed examination of the answer and granting a chance of hearing.

The same judgment is a crucial reminder of the role of the judiciary in ensuring that the measure of administration follows the significant tenets of fairness and due procedure.

The Calcutta High Court by setting aside the GST DRC-01 notice for Eden Real Estates, has supported the significance of complying with procedural justice, especially in the realm of tax disputes.

This case signifies victory for Eden Real Estates and sets a precedent for future disputes concerning procedural anomalies in the issuance of show-cause notices.