Audit and Demand of Tax

[Deepak Bubna]

Hello Everyone,

Can the officer issuing ADT-02 and DRC-01A be same ? If not, Is there any section/rule or judgment that bars same officer to issue both.

Regards.

[KASTURI SETHI]

As per Adjudication Manual and Model All India GST Audit Manual,2023, there is no legal hurdle, if both are issued by the same officer.

[Padmanathan KV]

This has been discussed at length in another thread in TMI. Pls consider following views of mine-

1. I hold the view that the officer who does the Audit should not also adjudicate the same. It will be a prejudiced/biased adjudication and violation of Natural Justice.

2. DRC-01A is not an adjudication, it is only an intimation. (So to answer your question, Yes officer issuing ADT-02 can issue DRC-01A).

3. Issuance of SCN (DRC-01) is also not adjudication.

4. The SCN must direct you to show cause before the Jurisdictional Adjudicating Officer.

5. Order should be passed by the Jurisdictional Adjudicating Officer who hears the matter.

That being said, Experts in this forum are of the view that there no Bar under GST Act, for the audit officer to carry out adjudication also as the power are granted based on the designation and not administrative function.

I personally feel it is a serious lacuna in the Act, though many States have addressed the same through their Notification/Circular.

AI Summary

Audit adjudication separation: allowing the same officer to audit and issue demand intimations raises natural justice and procedural concerns.
Whether the same officer can issue ADT-02 and DRC-01A: the Adjudication Manual and Model All India GST Audit Manual, 2023, record no statutory bar to the same officer issuing both; however, commentators argue that allowing the audit officer to adjudicate raises natural justice concerns, that DRC-01A is an intimation and SCN issuance is not adjudication, and that SCNs should be directed to the jurisdictional adjudicating officer with orders passed by the hearing officer; some States have issued notifications or circulars to address this issue.