Can the same officer who conducted the audit U/S 65 of CGST/SGST Act also adjudicate the raised paras U/S Section 73 ?

[Gautam Godhwani]

Vide Circular No.169/01/2022-GST it was stated that the auditing officer can issue the SCN but not adjudicate the proceedings. The adjudication would be done by the proper officer under whose jurisdiction the RTP falls.

As per the Model All India GST Audit Manual 2023, at Pg 62 : "It is the administrative decision of the respective State whether the audit officer will subsequently adjudicate or that will be done by a separate officer."

Thus the first contemplates a situation where auditing officer can be the adjudicating officer but in the latter this is not permissible. What is the current factual situation ? Would one have to check the State GST Audit Manuals to know the position ?

AI Summary

Auditor adjudication permits issuing SCNs but risks bias; separation of audit and adjudication is advised despite no statutory bar.
Whether an audit officer under Section 65 may adjudicate Section 73 liabilities involves administrative guidance versus statutory permissibility: Circular No.169/01/2022-GST limits adjudication by the audit officer while the Model All India GST Audit Manual leaves the matter to States. Those instruments are nonbinding; many States nonetheless appoint audit officers as adjudicators. The core legal concern is potential bias and infringement of the principle of natural justice, so parties should check state manuals and departmental directives to assess procedural fairness and challengeability.