By S&S Co. Advocates & Solicitors · Published 25 September 2026 · Informational content, not legal advice: see our disclaimer
Why Procedure Matters Before You Argue the Merits
Before responding to a GST show cause notice (SCN) on its substance, it is worth checking whether the notice itself meets the basic procedural requirements the CGST Act and Rules impose. A notice that discloses no specific allegation, does not identify the statutory provision under which it is issued, or is issued by an officer without jurisdiction over the taxpayer can often be challenged on that footing alone, independent of the underlying tax dispute.
Specificity of Allegations
An SCN under Section 73 or 74 of the CGST Act must set out the amount of tax, interest and penalty proposed, and the grounds on which it is proposed, with sufficient particularity for the taxpayer to meaningfully respond. Courts have repeatedly set aside notices that recite only the bare language of the statute, such as alleging 'suppression of facts' or 'wilful misstatement' without identifying what fact was suppressed or misstated: since a taxpayer cannot be expected to respond to an unspecified accusation.
The Right to a Personal Hearing
Section 75(4) of the CGST Act mandates a personal hearing where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. This is not discretionary once either condition is met: an order passed without granting a requested hearing, or without offering one where an adverse decision is proposed, is vulnerable to being set aside purely on that ground, regardless of the strength of the department's case on merits.
Jurisdiction of the Issuing Officer
GST notices must be issued by an officer with territorial and monetary jurisdiction over the taxpayer as notified under the relevant jurisdiction notifications. A notice issued, or an order passed, by an officer other than the one who conducted the proceedings. For instance where one officer holds the hearing and a different officer signs the final order. Has been held by courts to be a distinct procedural defect independent of the merits.
Timing and the DRC-01/DRC-01A Sequence
Ordinarily, a pre-SCN intimation in Form GST DRC-01A is expected before formal proceedings begin, giving the taxpayer an opportunity to pay the ascertained tax and interest voluntarily and avoid a full SCN and penalty. While not always treated as mandatory in every circumstance, its complete omission, combined with other defects, can strengthen a procedural challenge, particularly for smaller, non-fraud discrepancies that would ordinarily be resolved at that intimation stage.
What a Procedural Challenge Does. And Does Not: Achieve
A successful procedural challenge typically results in the notice or order being set aside and the matter remanded for the department to proceed afresh, curing the defect. It does not usually extinguish the underlying tax liability if one genuinely exists. Taxpayers should treat a procedural defect as a basis to secure a fair, properly conducted process, not as a permanent escape from a liability that is otherwise sustainable on merits.
Frequently Asked Questions
Can I challenge a GST SCN only on procedural grounds without responding to the merits?
Yes. A writ petition or reply can raise procedural defects such as vague allegations, lack of jurisdiction, or denial of a hearing as a threshold objection, and many courts examine these before, or independent of, the underlying merits.
Is a personal hearing mandatory even if I did not specifically request one?
Section 75(4) of the CGST Act requires a hearing to be offered where an adverse decision is contemplated, even without a specific request, in addition to being mandatory where the taxpayer has asked for one in writing.
Does a vague SCN mean the tax demand disappears entirely?
Not necessarily. A notice set aside for vagueness or a procedural defect is usually remanded, allowing the department to reissue a properly particularised notice within the applicable limitation period, rather than permanently barring recovery of a genuine liability.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Central Goods and Services Tax Act, 2017: Sections 73, 74 and 75.
- Central Goods and Services Tax Rules, 2017. Rule 142 and Forms GST DRC-01, DRC-01A.