Is Pre-Show Cause Notice (Form DRC-01A) under Rule 142(1A) mandatory? Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155 Remember these High Court judgments to challenge direct DRC-01 issues, especially "without prejudice to." Learn to challenge a notice on multiple grounds. Bookmark for future reference. 1. Yaduka Agrotech Pvt. Ltd. - Supreme Court (2022) 66 GSTL 385 Where Show Cause Notice issued without pre-show cause notice consultations was directed by High Court to be considered as communication for pre-SCN consultations, and thus, assessee was given sufficient opportunity to satisfy authorities, principles of natural justice stood substantively complied. .2. Eden Real Estates (P.) Ltd. - Calcutta High Court (2024) 159 taxmann com 540 Where Revenue Authority had issued show cause notice without considering or discussing assessee's detailed reply to pre-show cause notice, show cause notice was set aside. 3. Diamond Beverages Pvt. Ltd. - Calcutta High Court (2023) 157 taxmann com 479 Where assessee had replied to pre-show cause notice, but show cause notice issued under section 73(1) without due application of mind and without considering assessee's reply to pre-show cause notice and without conducting any inquiry or investigation, show cause notice was to be set aside. 4. DS Chewing Products LLP (2025) 171 taxmann com 190 Where assessee challenged tax liability imposed upon him in purported exercise of power by Assessing Authority under section 73 and contended that it was mandatory for authority to have issued a pre-show cause notice but no pre-show cause notice was issued, there appeared to be violation of mandatory provisions of law; matter required consideration. 5. Gulati Enterprises - DelhiHigh Court (2023) 68 GSTL 237 Pre-show cause notice consultation is mandatory under unamended Rule 142(1A) of CGST Rules, 2017; voluntary statement of assessee quashing same could not substitute such pre-show cause notice consultation. 6. Saumya Agroech Pvt. Ltd. - Calcutta High Court (2022) 145 Taxmann com 154 Show Cause Notice issued without pre show cause notice consultations should be considered as communication for pre-SCN consultations and assessee should submit his objections and Assessing Officer should to fix a date for pre-SCN consultation. Note: The Supreme Court has affirmed this case in Yaduka Agrotech Pvt. Ltd. [(2022) 66 GSTL 385] Practice Tip: Rules don't override the Act. Section 74 sets penalties at 15% pre-show cause and 25% post-show cause. Issuing an SCN directly removes the chance for a 15% penalty, though SCNs often include it. Challenging the procedure might help save on tax, interest, and penalties. I hope you will find this useful. Abhishek Raja Ram 9810638155