Due Diligence for Notices u/s 73/74 of GST Act: Assam GST Dept issues Advisory for timely Adjudication Completion [Read Notification]

The Assam GST Department, through Instruction No. 14/2024-GST dated March 14, 2024, has released an advisory for diligent handling of notices under Sections 73/74 of the Assam GST Act and the timely resolution of related adjudications.

In the current fiscal year, numerous demand show cause notices in FORM DRC-01 have been dispatched under Sections 73/74 of the Assam GST Act, 2017, by competent officers. While it's imperative for revenue interests to issue demand notices for cases involving tax discrepancies, incorrect input tax credit claims, tax evasion, etc., doing so without thorough review of facts and pertinent documents, as well as the taxpayers' explanations, could lead to avoidable legal disputes and inconvenience for taxpayers. Moreover, hasty issuance of such notices could burden adjudicating officers and appellate authorities, potentially compromising the quality of their decisions.

As the deadline for issuing demand notices under Section 73 of the Assam GST Act for FY 2019-20 approaches (May 31, 2024), the Zonal Joint Commissioner of State Tax should oversee ongoing investigations, audits, and reviews to ensure timely completion. Issuing demand notices should be preceded by a fair opportunity for taxpayers to present their case, allowing ample time for examination and consideration of their responses.

Additionally, attention is drawn to Section 73(10) of the Assam GST Act, 2017, which mandates the issuance of orders under Section 73(9) within three years from the annual return's due date or the date of erroneous refund. The deadlines for adjudication orders for FY 2017-18, 2018-19, and 2019-20 are approaching or have already passed, requiring prompt action from proper officers to avoid non-compliance.

Field officers are advised to expedite the resolution of demand notices issued during the fiscal years mentioned above, prioritizing adherence to natural justice principles and ensuring the quality of adjudication orders. This approach will not only streamline the process but also enhance the defensibility of decisions in potential legal challenges. Timely issuance of adjudication orders must be balanced with maintaining legal compliance and procedural integrity.

To Read the full text of the Order CLICK HERE

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