Important directions given by High Court in this case:

1. First investigate at supplier's end & then issue notice to buyer for ITC - GST Authority shall, first investigate into the matter from the supplier’s end, collect the necessary information, afford an opportunity to the appellants to put forth further submission on such information and thereafter afford an opportunity of personal hearing and then proceed to take a decision as to whether a show cause notice under section 73(1) of the Act has to be issued.

2. Extracting assessee's reply in the final notice does not mean reply has been considered - At the first blush, on perusal of the show cause notice, it appears that the submissions made by the appellants in their reply to the pre-show cause notice appears to have been considered. However, on a closer scrutiny of the show cause notice, it is seen that except extracting the reply given by the appellants, the authority has not dealt with the contentions, which were placed by the appellants in the reply to the pre-show cause notice. Thus, this would be sufficient to hold that the show cause notice has been issued without due application of mind.

3. SCN set aside - SCN is set aside and remanded back.