The Calcutta High Court has invalidated a GST adjudication order issued in summary form under Section 73, holding that the order lacked reasons, no hearing was granted, and the earlier notices were improperly served through the GST portal.
In M/s. Duttcon Consultant and Engineers Private Limited v. Assistant Commissioner of State Tax, Shyambazar Charge & Ors. (WPA/24188/2025, order dated December 09, 2025), the Calcutta High Court set aside a summary adjudication order passed under Section 73 of the WBGST/CGST Act. The Court held that:
- An adjudication order must comply with Section 75(6) by setting out relevant facts and reasons.
- An opportunity of hearing under Section 75(4) is mandatory where an adverse decision is contemplated.
- Uploading notices under the GST portal’s “additional notices and orders” tab constitutes improper service (as per earlier precedents).
The ruling is procedurally significant for GST litigation and compliance practice.
Background
The petitioner challenged:
- Form GST DRC‑01 (summary SCN) dated 13 June 2024, and
- Form GST DRC‑07 (summary adjudication order) dated 15 July 2024,
issued without factual details and uploaded only under the GST portal’s “additional notices and orders” tab.
The petitioner became aware of the proceedings only when a garnishee notice under Section 79(1)(c) read with Rule 145(1) was issued to its bank. No hearing had been granted. The State argued the writ was delayed.
Court’s Analysis
1. Defective Service – Writ Maintainable Despite Delay
Relying on earlier rulings (Sankar Agarwala and Ram Kumar Sinhal), the Court held that uploading notices under the “additional notices and orders” tab does not constitute proper service. The writ was therefore maintainable despite the time gap between the order and the filing.
2. Section 75(6): Order Must Contain Facts and Reasons
The adjudication order was issued solely in summary form, lacking any factual basis or reasoning. The Court reiterated: “An order without reasons is a nullity, particularly when it has civil and evil consequences.”
The absence of reasons violated Section 75(6) and rendered the order unsustainable.
3. Section 75(4): Mandatory Hearing Not Granted
Despite an adverse decision being proposed, the authority granted no opportunity of hearing, violating both the statute and principles of natural justice.
4. Defective Show Cause Notice
The DRC‑01 notice itself lacked the factual particulars necessary for a meaningful response. Fresh proceedings were therefore required.
Operative Directions
- The DRC‑07 adjudication order dated 15 July 2024 is set aside for being unreasoned and for lack of hearing.
- A detailed show cause notice must be issued within two weeks.
- Petitioner may submit a reply within two weeks thereafter.
- A fresh order must be passed within two weeks of receiving the reply.
- If no reply is filed, the authority may proceed ex parte.
- The bank attachment is lifted.
- The petitioner may raise limitation only if the ground existed at the time of the original SCN (13 June 2024).
- Merits of the case remain open.
Implications for GST Professionals
1. Reasoned Orders Are Essential
Summary DRC‑07 orders that lack reasons fail Section 75(6) requirements and are vulnerable on judicial review.
2. Hearing Is Mandatory
Authorities must grant a hearing before passing an adverse order under Section 75(4).
3. Valid Service Matters
Service through non‑standard GST portal tabs may be held invalid, affecting limitation and enforceability.
4. Recovery Depends on Valid Adjudication
If the underlying adjudication order is defective, recovery actions such as bank attachment cannot stand.
Conclusion
This judgment reaffirms that GST adjudication is a quasi‑judicial process requiring:
- proper service of notices,
- a reasoned and fact‑based order, and
- observance of the statutory right to a hearing.
These are substantive safeguards, not procedural technicalities.
Calcutta HC Judgement dated 09/12/2025: Duttcon Consultant and Engineers Private Limited v. Assistant Commissioner of State Tax, Shyambazar Charge & Ors. (WPA/24188/2025)