The Kerala GST Department has issued a crucial clarification on the adjudication process for show cause notices (SCNs) involving multiple taxpayers or periods, ensuring consistency and avoiding jurisdictional conflicts. These guidelines were issued through Circular No. 12/2024-Kerala SGST dated October 18, 2024, in supersession of the earlier instructions.
Adjudication of SCNs issued by various verticals has been entrusted to the jurisdictional adjudicating authority under the taxpayer services vertical, as per Circular No. 04/2023-SGST dated January 8, 2023.
If multiple SCNs are issued for the same issue across different periods, the authority adjudicating the notice with the highest value will handle all related notices.
For interconnected taxpayers or notices involving a single issue but multiple GSTINs under the same PAN, a single adjudicating authority will ensure consistent decision-making.
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The Joint Commissioners of Taxpayer Services have been empowered with statewide jurisdiction to handle cases involving multiple taxpayers or notices across districts. This authority ensures a uniform approach, irrespective of the amount involved.
Where the noticee with the highest demand operates in a specific district, all connected notices will be adjudicated by the Joint Commissioner of Taxpayer Services in that district.
Further, connected penalty notices issued under other sections alongside notices under Sections 73, 74, or 76 of the Kerala SGST Act will also fall under the purview of the same authority.
Circular No. 12/2024-Kerala SGST rescinds Circular No. 6/2023-SGST dated October 9, 2023. However, actions already taken under the previous circular remain valid.
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The circular states as follows: “Adjudication of show cause notices (SCNs) issued by various verticals has been entrusted to the jurisdictional adjudicating authority under the taxpayer service vertical, as per instructions issued via Circular No. 04/2023-SGST dated January 8, 2023. Furthermore, Circular No. 6/2023-SGST dated October 9, 2023, specifies that if multiple notices are issued to the same taxpayer on the same issue for different periods, the authority adjudicating the notice with the highest value shall also adjudicate the other notices.
There are situations where multiple taxpayers may be involved in a particular issue. For SCNs issued by officers of the Intelligence and Enforcement Vertical, instances may arise where the principal places of business of the noticees fall under the jurisdiction of multiple adjudicating authorities. Similarly, SCNs on the same issue may be issued to different noticees having the same PAN but different GSTINs, with their principal places of business under the jurisdiction of multiple adjudicating authorities.
In such cases, the current procedure is to transfer the cases of each taxpayer involved to their respective adjudicating authorities after the issuance of SCNs. This can result in multiple authorities adjudicating the same issue, potentially leading to legal inconsistencies. To address this, a single adjudicating authority will now handle all adjudications in such cases, ensuring uniformity and consistency in decision-making.
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For such scenarios, the Joint Commissioners of Taxpayer Services are empowered with state-wide jurisdiction as per the referred notification. When multiple taxpayers across the state are interconnected in a single detected issue, the Joint Commissioners of Taxpayer Services will adjudicate these cases, irrespective of the amounts involved.
SCNs requiring a common adjudicating authority will henceforth be answerable to the Joint Commissioners of Taxpayer Services in the following manner:
– Where the principal place of business of the noticee with the highest tax or penalty demand in the SCNs falls in a particular district, the Joint Commissioner of Taxpayer Services of that district will adjudicate all interconnected notices, regardless of the jurisdiction of the other noticees.
Additionally, penalty notices issued under any section alongside notices under Sections 73, 74, or 76 of the Kerala SGST Act will also be adjudicated by the same common adjudicating authority.
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Circular No. 12/2024-Kerala SGST dated October 18, 2024, issued in File No. SGST/5230/2024-PLC9, supersedes and withdraws the earlier Circular No. 6/2023-SGST. However, any actions already initiated based on the previous circular will remain valid and will be treated as initiated under the new circular.
Stakeholders facing any difficulties in implementing this circular are encouraged to report them promptly for resolution.”
Taxpayers and officers facing difficulties in implementing these guidelines are encouraged to report issues to the concerned department wings promptly.
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