DOUBLE ADJUDICATION.IS IT ACCEPTABLE?

[Sadanand Bulbule]

Dear experts

You are aware that, the GST Act provides for adjudication under Section 73 and Section 74 on complete fulfilling the specified conditions thereunder. However in some situations the parameters of both these sections are apparently manifest for the same year for the same taxpayer. That being the case, is it acceptable to conclude double adjudication separately under these sections for the same year for the same taxpayer?

Alternatively, whether a single adjudication under Section 74 would be the right remedy with respective provisions as regards to levy prescribed amount of penalty for such unusual situation?

On practical note, many double adjudications are being concluded to take care of such situation.

I understand that to overcome such situation, a new unified Section 74A is brought in place applicable from FY 2024-25 onwards.

I warmly welcome experts to offer comments.

AI Summary

Double adjudication under GST: distinct notices allowed only for different factual issues; same facts require election of classification.
Double adjudication-issuing and sustaining two orders characterising the same facts as both non fraudulent error and as fraudulent evasion-is not appropriate; the authority must not treat the same factual matrix simultaneously under both remedial frameworks. Separate notices and orders are permissible only where they relate to distinct sets of facts or independent issues for the same taxpayer in the same year. The officer must elect the legal characterisation to be pursued, and a unified adjudication provision has been introduced to address overlapping situations.