Hon’ble High Court vide above judgement held that in absence of SCN and adjudication order, the recovery proceedings is unjustified and not as per law. The relevant para of Judgement is as under:
It is crystal clear that no show cause notice in terms of Section 73 (1) of the JGST Act, 2017 has been served by the Respondents upon the Petitioner towards imposition of the tax, interest and penalty under the JGST Act. [para 7]
Accordingly, we hold that when no detailed adjudication order, as required under Section 73 (9) of JGST Act, 2017, has been passed or issued to the Petitioner, the Petitioner is not liable to pay any tax, interest or penalty only on the basis of the said Form DRC-07. [para 8]
In view of the discussions made herein above, the Summary Order in Form GST DRC-07, dated 19.01.2019 bearing reference number ZA200119000232J, issued by the Respondent No.4 whereby tax, interest and penalty under the JGST Act amounting to Rs. 8,04,134/- has been imposed on the Petitioner, is hereby, quashed and set aside. [Para 10]
