Proper officer for adjudication, Goods and Services Tax - GST

[Rajat Gupta]

In terms of CBIC circular 31/2018, DGGI and audit authorities can make taxpayers answer to one single Adjudicating authority in case of SCN involving taxpayers based in multiple jurisdictions.

Does this circular also apply to SCN issued by the Anti-evasion wing of a particular commissionerate?

Posts / Replies

[YAGAY andSUN]

The CBIC Circular No. 31/05/2018-GST dated 09.02.2018 addresses the issue of adjudication of Show Cause Notices (SCNs) issued by various authorities such as DGGI, Audit Commissionerates, etc., particularly in cases involving multi-jurisdictional taxpayers.

Summary of Circular 31/05/2018-GST:

1. The circular was issued to avoid multiple adjudications and jurisdictional conflicts where SCNs involve taxpayers registered in multiple states or units in different jurisdictions.
2. It provides that in such cases, there should be a single adjudicating authority assigned to decide the matter in a centralized and coordinated manner.
3. This is especially relevant when DGGI (Directorate General of GST Intelligence) or Audit Commissionerates issue notices covering multiple GST registrations (GSTINs) of the same PAN-based taxpayer.

Applicability to Anti-Evasion Wings of Commissionerates:

While the circular explicitly mentions DGGI and Audit Commissionerates, the spirit and intent of the circular apply equally to all investigative wings, including:

• Anti-evasion (Preventive) wings of jurisdictional CGST/SGST Commissionerates.
• Any authority that may issue SCNs involving multi-jurisdictional registrations or PAN-level investigations.

However, there is a technical distinction:

• If the SCN is issued by the anti-evasion wing of a particular CGST/SGST Commissionerate and concerns only the GSTIN(s) under its own jurisdiction, then Circular 31/2018 may not mandatorily apply.
• But, if the SCN issued by anti-evasion covers multiple registrations of the taxpayer in different states or commissionerates, then the principle of centralized adjudication per Circular 31/2018 should be followed to avoid parallel proceedings.

Legal and Practical Consideration:

• The circular is an administrative instruction binding on the department as per Article 73 of the Constitution and Section 168 of the CGST Act.
• Taxpayers can insist on its application by requesting transfer/consolidation of SCNs for adjudication before one designated authority to ensure natural justice, avoid duplication, and maintain consistency.

Conclusion:

• Yes, Circular 31/2018 can and should apply to SCNs issued by the anti-evasion wing, if the SCN involves multiple GSTINs across jurisdictions or PAN-level investigations.
• In such cases, the taxpayer may request centralized adjudication before one competent authority, preferably as per the circular's guiding principles.
• If the SCN is local in scope (only one jurisdiction/GSTIN), then the circular does not apply.

***

[YAGAY andSUN]

Here is a professionally drafted representation letter requesting consolidation of adjudication proceedings under CBIC Circular No. 31/05/2018-GST dated 09.02.2018:

To

The Principal Commissioner / Commissioner

[Name of Commissionerate]

[Address]

Subject: Request for centralized adjudication of SCN under CBIC Circular No. 31/05/2018-GST dated 09.02.2018 – reg.

Ref:

1. SCN No. ___________ dated __________ issued by Anti-Evasion Wing, [Name of Commissionerate]
2. PAN: ______________
3. GSTINs involved:
   • [GSTIN 1 – State 1]
   • [GSTIN 2 – State 2]
   • … etc.

Respected Sir/Madam,

We write this letter in reference to the captioned Show Cause Notice (SCN) issued by the Anti-Evasion Wing of your esteemed office involving multiple GST registrations held by us across different States.

We humbly submit the following for your kind consideration:

1. The said SCN covers alleged liabilities under GST for multiple GSTINs registered in various States, all held under the same PAN, viz. [PAN No.].
2. In this regard, we draw your kind attention to CBIC Circular No. 31/05/2018-GST dated 09.02.2018, which provides administrative clarity for the adjudication of SCNs covering multiple registrations across jurisdictions.
3. The circular explicitly states that in cases where the taxpayer has multiple registrations in different States (i.e., multi-jurisdictional presence), the CBIC and State GST authorities shall coordinate to ensure that only one adjudicating authority is designated to handle the SCN, thus avoiding multiple proceedings and ensuring consistency in adjudication.
4. The Hon’ble CBIC has emphasized the need for coordinated adjudication to avoid duplication, conflicting decisions, and administrative inconvenience both for the Department and the taxpayer.
5. In the present case, since the SCN issued covers more than one jurisdictional GST registration, we respectfully request that this matter be adjudicated centrally by one designated adjudicating authority, in line with the above circular.
6. This will facilitate a fair, consistent, and efficient adjudication process and avoid the burden of defending the same matter before multiple authorities for different GSTINs.

Prayer:

In view of the above, we request your good office to:

• Kindly initiate inter-commissionerate coordination to implement centralized adjudication under the provisions of Circular No. 31/05/2018-GST.
• Inform us of the designated adjudicating authority who will adjudicate the matter centrally.
• In the interim, keep the adjudication process on hold before any local authority to avoid parallel proceedings.

We shall be grateful for your kind consideration and necessary instructions in this regard. Please feel free to contact us for any further information or clarification.

Thanking you,

Yours faithfully,

For [Company Name]

Authorized Signatory

Name: ________________

Designation: ____________

Email: _________________

Phone: _________________

Date: _________________

Place: ________________

***

[KASTURI SETHI]

A Commissionerate has many branches. For example;- Technical branch, Valuation branch, adjudication branch, review branch etc. Anti-evasion wing is one of the branches. .

Circular No. 31/05/2018-GST, dated 9-2-2018 has been amended vide the following circulars :-

(i) 239/33/2024-GST dated 04-12-2024 : Proper officer under Sections 73 and 74 of CGST and under IGST Act - Empowering Additional Commissioners/Joint Commissioners of Central Tax of specified Central Tax Commissionerates to adjudicate SCNs issued by DGGI - Circular No. 31/05/2018-GST amended 1086/01/2024-CX dated 03-07-2024 : Litigation - Revised Monetary limits - Adjudication of SCNs in Central Excise for commodities classified under Chapter 24 of Schedule IV of Central Excise Act – Clarification.

(ii) 2/2023-GST (Instruction) dated 26-05-2023 : Registered person - Scrutiny of Returns for FY 2019-20 onwards - Standard Operating Procedure (SOP) notified.

(iii) 2/2022-GST (Instruction) dated 22-03-2022 : Registered person - Scrutiny of returns for FYs 2017-18 and 2018-19 - Standard Operating Procedure (SOP) notified.

(iv) 169/01/2022-GST dated 12-03-2022 : Proper Officer under Sections 73 and 74 of CGST Act and Section 20 of IGST Act - Power to Additional Commissioners/Joint Commissioner of Central Tax of specified Central Tax Commissionerate with All India Jurisdiction for Adjudication of SCNs issued by DGGI - Circular No. 31/05/2018-GST amended.

[Rajat Gupta]

Thanks for the valuable inputs and detailed clarifications. Much appreciated