TaxTMI 
TaxTMI 
Sir Please let me know that who is the proper adjudicating authority in case of DRC 01 to be issued only for interest? Whether the same monetary limit exist for adjudication of the Principal tax amount. Please clarify.
Proper adjudicating authority
11 Dec 2023 
7 Replies 
1555 Views Asked by
Interest as integral part of tax: recovery notice may be issued by superintendent; adjudication required only if liability is disputed.
Interest on delayed GST payments is an integral part of the principal tax and falls within the same monetary limits for adjudication as tax and cess. Interest liability ordinarily arises automatically by operation of law and may be recovered by issuance of DRC 01 by an officer empowered within the prescribed monetary thresholds. A show cause notice and formal adjudication are required only if the assessee disputes the liability or calculation of interest, in which event contested recovery follows the provisions for disputed tax adjudication. (AI Summary)
Interest on delayed GST payments is an integral part of the principal tax and falls within the same monetary limits for adjudication as tax and cess. Interest liability ordinarily arises automatically by operation of law and may be recovered by issuance of DRC 01 by an officer empowered within the prescribed monetary thresholds. A show cause notice and formal adjudication are required only if the assessee disputes the liability or calculation of interest, in which event contested recovery follows the provisions for disputed tax adjudication. (AI Summary)