Can new issues be raised in SCN when the ADT 02 is raising those?

[Lokesh Chajed]

GST DESK Audit was initiated for FY 2019-20. The relevant documents were submitted and finally ADT-02 was issued by a particular officer (Say 'A'). Post the ADT-02, DRC-01A was also issued by the same officer and accordingly a reply was filed by the Taxpayer.

Now, (due to a transfer of officer) the audit authority has changed in the meanwhile and a new officer 'B' has taken the position. He is raising new issues in the SCN being issued which were neither covered in ADT 02 issued nor in the DRC 01A issued.

Question is: Can there be new issues raised in the SCN when the ADT 02 and DRC 01A ssued already are not covering these matters? Can the SCN transverse beyond the scope of the issues raised in ADT 02 and DRC 01A ?

AI Summary

Scope of show cause notice: new substantive issues ordinarily cannot be introduced beyond the audit findings and DRC communications.
New substantive issues generally should not be introduced in a show cause notice when earlier audit communications (ADT 02 and DRC 01A) did not raise those matters; only clerical corrigenda are appropriate. Whether to challenge an SCN that goes beyond prior audit findings depends on the factual matrix, officer jurisdiction, prior mandatory communications, and whether the variation deprives the taxpayer of statutory election or payment options.