Shri Shyam Trading Company v. Commissioner of Chhattisgarh State Tax
In favour of the assessee
The ruling in brief
Shri Shyam Trading Company (WPT No. 140 of 2021) challenged a Section 73 assessment based only on a summary show cause notice without a separate notice specifying reasons as Rule 142 requires. The High Court of Chhattisgarh on 16 July 2026 held non-compliance with Section 73 and Rule 142 vitiated proceedings, quashing the assessment and summary notice with liberty for fresh lawful notice. Outcome favoured the assessee. Chhattisgarh aligns with broader jurisprudence distinguishing DRC-01 summaries from substantive Section 73(1) notices. Trading assessees receiving bare summaries should raise statutory objections early. Not legal advice. Disposed on 2026-07-16, High Court of Chhattisgarh recorded in favour of the assessee in WPT NO. 140 OF 2021. Central provisions engaged included CGST S.73, CGST Rules R.142. 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).
- CGST Rules R.142 — Notice and order for demand of amounts payable under the Act.
Source documents
Similar rulings
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In favour of the assessee; matter remanded
Arup Datta v. State of West Bengal
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