Validity of notice/letter issued by Proper Officer

[Krishna Murthy]

Sir, In one case, the proper officer has issued a notice/letter requiring the registered person to submit all the invoices, e-waybills and bank statements so as to prove the genuineness of the ITC claimed by the registered person.

My question is, is such letter/ notice is a valid notice. The said letter/ notice does not contain any provision or section under which such information is asked for. I feel that such information can be asked only when there is express provision under the law. Say for example Sec 61 of CGST Act which talks about scrutiny of returns. Is it valid to ask such information without valid express provision under the law.

The information asked for is much voluminous. As per Sec 160, once a notice is acted upon, the validity of the same cannot be questioned at a later date.

[KASTURI SETHI]

Sh. Krishna Murthy Ji,

Does the letter/notice contain DIN ?, If it is so, the letter/notice issued by the department is valid even without mentioning Section or provision.The information called for by the department pertains to return filed by the tax payer. Also see Section 150 of CGST Act.

The tax payer whom letter has been issued is required to comply with in his own interest. The information called for is not beyond GST laws.

[Krishna Murthy]

Sri KASTURI SETHI Sir, Thanks for your kind response.

Sec 150 is about Information Return for which separate Form needs to be notified. This Information Return is on par with Annual Information Return / Specified Financial Transactions Return filed as per Income Tax Act. To my knowledge, no such return has been notified by the department till date. Even if it is assumed to be notified, the Sec 150 should be made applicable to the class of persons mentioned there in and one particular registered person cannot be asked to furnish details. Please comment Sir.

[KASTURI SETHI]

What about DIN ? Whether mentioned or not ? Study more about the meaning and message of Section 150.

[KASTURI SETHI]

My Humble Suggestion

Submit the docs asked for by the department rather than picking holes in the letter/notice. It is in the interest of the tax payer.It is not artificial advice. To follow or not to follow, that is your prerogative.

AI Summary

Validity of notice requiring records: a DIN can render the request valid; taxpayers advised to comply with document demands. Validity of notices requesting invoices, e-waybills and bank statements turns on whether a DIN is present and whether the information relates to returns; contributors note that a notice with a DIN is treated as valid even without a cited statutory provision, while the scope of an Information Return regime and its notification affects whether specific persons may be required to file such returns, and practical advice favours complying with document requests.