Absence of Interest and Penalty in Show Cause Notice Does Not Invalidate Proceedings under CGST Act

The Delhi High Court examined whether a show cause notice issued under the CGST Act could be challenged as illegal merely because it did not specifically quantify the proposed interest and penalty amounts. 

While the Court acknowledged the statutory requirement under Sections 75(6) and 75(7) that the “amount” in a show cause notice includes tax, interest, and penalty, it held that non-mention of the quantified figures by itself would not invalidate the notice. 

The Court relegated the petitioner to the statutory appellate remedy while simultaneously cautioning the authorities that future notices must clearly specify the proposed interest, applicable rate, and penalty details.