MS Sarada Refrigeration and Air Condition v. State of Assam
The ruling in brief
MS Sarada Refrigeration and Air Condition (WP(C) No. 2345 of 2026) prevailed before the Gauhati High Court on 17 June 2026. The proper officer had passed an order in original under Section 73(9) after issuing only a summary show cause notice in Form DRC-01, without a substantive notice under Section 73(1) detailing cause of action. Following Construction Catalysers Pvt. Ltd., the court quashed the order dated 8 March 2024 and directed issuance of a proper Section 73(1) notice dating back to the summary notice, with limitation under Section 73(10) excluded for the interim period. Outcome favoured the assessee. Rule 142 summaries cannot replace full show cause notices. Not legal advice. Disposed on 2026-06-17, the High Court recorded as recorded in the order in the writ petition. Central provisions engaged included CGST S.73. Chartered accountants should map period-wise limitation, personal hearing, and appeal under Section 107 when advising on replies, deposits, or writ versus appeal strategy. This editorial summary is for professional research and is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.73 — Determination of tax not paid or short paid (non-fraud cases).
Source documents
Similar rulings
In favour of the revenue
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In favour of the assessee; matter remanded
Arup Datta v. State of West Bengal
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In favour of the assessee
GSR Handlooms v. Assistant Commissioner ST
GSR Handlooms, a registered dealer in handloom sarees, challenged a single composite summary assessment order covering multiple tax periods before the High Court of Andhra Pradesh (Writ Petition No. 26316 of 2026, 17 September 2026). Under Section 73 of the CGST Act, the Division Bench held that a composite assessment across years is unsustainable. The impugned order was set aside and the department may initiate separate proceedings for each assessment year. Judgment follows the Andhra Pradesh line on period-specific adjudication in demand matters. Result: in favour of the assessee. For practitioners reviewing DRC-07 orders spanning several FYs, this decision is a further data point within that jurisdiction. Informational; not legal advice. Disposed on 2026-09-17, High Court of Andhra Pradesh recorded in favour of the assessee in WRIT PETITION NO. 26316 OF 2026. Central provisions engaged included CGST S.73. Chartered accountants should map period-wise limitation, personal hearing, and appeal under Section 107 when advising on replies, deposits, or writ versus appeal strategy. This editorial summary is for professional research and is not legal advice.
In favour of the assessee; matter remanded
Raj Kumar Borthakur v. Joint Commissioner of Revenue
Raj Kumar Borthakur (WPA No. 464 of 2026) challenged an adjudication order for April 2017 to March 2018 before the High Court of Calcutta on 9 September 2026. The confirmed demand for tax, interest, and penalty exceeded amounts proposed in the show cause notice, which Sections 73 and 75 do not permit without fresh notice on enhanced grounds. The court remanded by treating the impugned order as a new show cause notice and requiring fresh response and adjudication. Outcome: assessee favoured with remand. Enhanced demands without supplemental SCN remain a common adjudication defect in West Bengal GST practice. CAs should reconcile DRC-01 figures with DRC-07 before advising payment. Not legal advice. Disposed on 2026-09-09, High Court of Calcutta recorded in favour of the assessee; matter remanded in WPA NO. 464 OF 2026. Central provisions engaged included CGST S.75, CGST S.73. Chartered accountants should map period-wise limitation, personal hearing, and appeal under Section 107 when advising on replies, deposits, or writ versus appeal strategy. This editorial summary is for professional research and is not legal advice.
In favour of the assessee; matter remanded
Babita Sharma v. Assistant Commissioner of Revenue
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