Section 73 of the CGST Act, 2017— Show Cause Notice  —-- The petitioner sought quashing of the SCN dated 07.10.2020 issued under section 73 and also challenged the Summary of SCN and Summary of the Order dated 12.12.2020. The petitioner relied upon the judgment rendered in the case of M/s NKAS SERVICES PRIVATE LIMITED Versus State of Jharkhand & others. These proceedings were initiated on account of a mismatch in GSTR-3B and GSTR-2A. The petitioner submitted that Summary of the Order imposes 100% penalty which is impermissible under the provisions of Section 73(9) of the Act. No adjudication order has been uploaded. The court observed that notices under section 73(1) are in the standard format and neither any particulars have been struck off, nor specific contravention have been indicated to enable the petitioners to furnish a proper reply. The show-cause notices can therefore, be termed as vague. This Court in the case of M/s NKAS SERVICES PRIVATE LIMITED held that summary of show cause notice cannot substitute the requirement of a proper show cause notice under section 73(1). Levy of penalty of 100% of tax dues are also in the teeth of the provisions of Section 73(9), wherein, the Proper Officer can levy penalty up to 10% of tax dues only. The above infirmity clearly shows non-application of mind on the part of the respondent. Proceedings also suffer from violation of principles of natural justice.

Held that:- The Hon’ble High Court set aside the impugned SCNs and Summary of the SCNs and Summary of Orders. However, Respondent No. 2 is at liberty to initiate fresh proceeding for the alleged contravention for the said tax period after issuance of proper show-cause notice in accordance with law.