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TMI BlogAudit under Section 65 of CGSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Audit under Section 65 of CGST X X X X Extracts X X X X X X X X Extracts X X X X ..... ayers received the adjudication orders only for the year 2019-20 under Section 73. Such piecemeal assessments /adjudications are valid ? Reply By Shilpi Jain: The Reply: As such no restriction in the law. Can be issued for each year as well. Reply By KASTURI SETHI: The Reply: SCN for the period 2019-20 for the normal period (Section 73) was required to be issued up to 31.05.24. This has been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one to avoid time bar limit. Hence such SCN in piecemeal is valid in GST laws. In audit based SCN, Section 74 is not invokable inasmuch as every transaction and other entries are recorded in books of accounts. So the allegation of suppression of facts etc. cannot sustain. There are judgements of High Court to this effect. Reply By Alkesh Jani: The Reply: Shri, I agree with the views expressed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y our Experts and I am uncertain of the full relevance of this observation, but it is pertinent to mention the following case for consideration. In the matter of Titan Company, the Hon'ble High Court of Madras made an important observation: The Court held that the practice of issuing bunches of show cause notices runs contrary to the intent of Section 73 of the Act. Furthermore, the Constitution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the Hon'ble Supreme Court, in the case of State of Jammu and Kashmir and Others v. Caltex (India) Ltd. [1965 (12) TMI 125 - SUPREME COURT], established a crucial legal precedent. The Caourt ruled that when an assessment involves multiple assessment years, each year can and should be treated separately. The items of assessment can be isolated and taxed accordingly for different periods, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each assessment year has its own distinct period of limitation. This period begins independently for each year, which is why the Hon'ble Supreme Court emphasized the need for separating and dissecting the assessments. Thanks, Reply By KASTURI SETHI: The Reply: Sh.Alkesh Jani Ji, You have enriched my knowledge by posting the judgement of Hon'ble Supreme Court here. Thank you very much. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani: The Reply: Yes, it is allowed to issue SCN for one year even though audit was conducted for three years. Reply By Veeresham Veerabomma: The Reply: Thank you all for the clarification requested. I want one toffee but in turn got two toffees by way of Supreme Court judgement by Alkesh Jani ji. Now the debate continues, surprisingly, some of the Central Proper Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s passed single order for multiple years under the same Section 65 of the CGST Act. i.e., 2019-20, 2020-21 and 2021-22. Composit / single adjudication order for multiple years? Kindly clarify, sir/s. Reply By KASTURI SETHI: The Reply: As per Adjudication Manual based on Board's instructions, a single adjudication order (also called common adjudication order) for multiple SCNs can be passed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the issue is same in all the SCNs. This practice is called bunching of SCNs for the purpose of adjudication but Board's circulars have no statutory force. This practice has been in force since long in the department.. This practice was adopted by the department to Govt.'s precious time. During my service in the department common adjudication orders were passed for multiple SCNs where i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue was the same. Most of the cases were dropped so there was no hue and cry. Reply By KASTURI SETHI: The Reply: (i) One SCN or more SCNs and common (single) adjudication order or separate adjudication order is not the issue to be contested. The main purpose of any adjudication order is to provide fair justice to the assessee/noticee and principles of natural justice are to be following by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority while passing an order. (ii) The CBIC's circulars are, orders etc. are issued under Section 168 (1) of CGST Act. (iii) Hence the bunching of SCNs for the purpose of adjudication is allowed whether it is pre-GST era or post GST regime. (iv) You should be concerned with natural justice and NOT with internal administrative mechanism of the department. Reply By KASTURI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SETHI: The Reply: If there is overlapping, then taking shelter of Hon'ble Supreme Court (posted by Sh.Alkesh Jani Ji) can be very very useful in this scenario. Reply By Veeresham Veerabomma: The Reply: Thanks for getting back to me so quickly with the information I needed. I'm grateful for your rapid reply and the detailed information provided. Your quick action in providing the request ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed information is invaluable, thank you. Thank you for addressing my information request so promptly.
Reply By KASTURI SETHI:
The Reply:
Sh. Veeresham Veerabomma Ji,
It gives me immense pleasure to know that you are very much satisfied with OUR replies.
Thanks a lot. X X X X Extracts X X X X X X X X Extracts X X X X
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