TMI BlogADJUDICATION UNDER GST (PART-1)X X X X Extracts X X X X X X X X Extracts X X X X ..... ADJUDICATION UNDER GST (PART-1) - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 14-3-2022 - - Meaning of Adjudication Adjudication is the process of deciding an issue relating to tax matters through departmental authorities empowered to determine issues relating to classification, valuation, refund claim, tax or duty payable etc. The department raises demands by way of Show Cause Notices (SCNs) to the assessees when irregularities are observed or suspected. Adjudication pre-supposes issuance of a show cause notice (SCN) - an intimation to show cause, explain or defend the proposed action as mentioned in the SCN. Infact, SCN is the first limb of principle of natural justice i.e., no one should be condemned unh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard. SCN should be clear, precise and unambiguous. Adjudication has not been defined in the Act but according to www. wikipedia. org, Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligation between the parties involved. Three types of dispute are resolved through adjudication: Disputes between private parties, such as individuals or corporations. Disputes between private parties and public officials. Disputes between public officials or public bodies. Adjudication proceedings in any assessment or penal proceedings is a very important aspect of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... administration. It provides an opportunity to the assessee to be heard and show cause before any action is taken in proceedings relating to him. Issue of show cause notice is a pre-condition to a proper adjudication which is an intimation to assessee of the proposed action by the department. The adjudicating officer adjudicates the show cause notice by considering the reply to show cause notice and other available or produced evidences by the noticee. A SCN should follow certain principles to be legally sustainable. To adjudicate means to decide, determine or to settle. Literally, it means the act of adjudicating, the process of trying and determining a case judicially. The application of the law to the facts and an authoritative declara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the result. An adjudication in favour of natural rights . A solemn or deliberate determination by the judicial power: the act of giving judgment. Black s Law Dictionary defines the term adjudicate so as to mean to settle in the exercise of judicial authority; to determine finally . Provisions of determination of tax not paid/short paid or erroneously refunded ( section 73 and 74 ) at a glance Relevant Sub- section Particulars Defaults made under section 73 (For reasons other than fraud etc.) Defaults made under section 74 (For reasons of fraud etc.) 1 Issuance of show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For defaulted sum along with interest and penalty under Act For defaulted sum along with interest and penalty equal to tax amount 2 Time limit for issue of Show cause notice Atleast three months prior to time limit specified for issuance of order Atleast six months prior to time limit specified for issuance of order 3 Issue of recurring show cause notice (follow-on SCN) Issued by way of a statement Issued by way of a statement 4 Status of statement issued on recurring SCN Deemed to be a notice Deemed to be a notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 Intimation by taxable person of deposit prior to issue of notice. Deposit of tax and interest thereon Deposit of tax, interest on such tax and penalty equal to 15% of tax amount 6 Proper officer not to issue SCN on receipt of information of deposit On receipt of information under sub section 5 On receipt of information under sub section 5 7 Short receipt of tax under sub section (5) as per opinion of proper officer Issue show cause notice for the sum short paid under sub section (1) Issue show cause notice for the sum short paid under sub sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (1) 8 Conclusion of proceedings within 30 days of issue of SCN On deposit of sum of tax as per SCN along with interest on such tax On deposit of sum of tax as per SCN, interest on such tax and penalty equal to 25% of such tax. 9 Considering representation and issue of order of SCN Order for payment of tax + interest + penalty not more than 10% of tax or INR 10,000/- whichever is higher Order for payment of tax + interest + penalty due from such person 10 Limitation period for issuance of an order Within 3 Years from due date of annual return or actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of submission of annual return, whichever is earlier Within 5 years from due date of annual return or actual date of submission of annual return, whichever is earlier 11 Deemed conclusion of proceedings - On deposit of sum of tax as per order + interest thereon + penalty equal to 50% of such tax within 30 days of communication of order. (To be continued .) - Reply By Biren Soren as = For FY 2017-18, if the actual date of filing the annual return is 31.12.2018, and extended due date for filing for Odisha is 07.02.2020, then, can a Show Cause Notice be issued under section 73 of CGST Act, 2017 after 31.09.2021. Dated: 6-6-202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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