Consolidated SCN and Order

[CABayyaReddy DK]

Sir,

Consolidated SCN and Consolidated ex-parte manual Order passed u/s. 73(9) of KGST act by the Additional Commissioner of Commercia taxes (Enforcement) for the FY 2017-2018 & 2018-2019 on 26/12/2023. Client not responded to notices or order due to his ill health. DRC 07 is a manual typed, Commissioner authorization number and date written and there is no order number. In the order, assignment number & date written, drc1a number and date and SCN number and date given and no order number is mentioned. Queries are

01. Since order number is not available, unable to file an appeal with condonation.

02. Can consolidated single SCN and single order be passed for two financial years.

03 Can enforcement officer issue an order.

04. Is this valid SCN and order?

Please advice.

Now queries are

01.

[Shilpi Jain]

You can challenge this order in the HC to get relief. Also bring out the reason for not responding to the notice.

[KASTURI SETHI]

Query No.1.. Since order number is not available, unable to file an appeal with condonation.

Reply: So many flaws in Order-in-Original. Hence invalid. Otherwise also ex-parte Adjudication Order is always challengeable. Such Order is in violation principles of natural justice. Case laws on medical ground are easily traceable.

Query No.2. Can consolidated single SCN and single order be passed for two financial years ?

Reply: Take shelter of Karnataka High Court judgements dated 07.08.24 and 30.9.24 2024 (10) TMI 116 - KARNATAKA HIGH COURT and 2024 (11) TMI 518 - KARNATAKA HIGH COURT.

Query No. 33 Can enforcement officer issue an order ?

Reply: Yes.

Query No. 4. Is this valid SCN and order ?

Reply: Order is invalid as detailed in reply to query no. 1. Regarding the validity of SCN nothing can be said in the absence of copy of the Show Cause Notice.

Disclaimer : These are my personal views for education purpose and not for any judicial or semi-judicial proceedings. Reply is based on the facts & circumstances disclosed by the querist in the query itself.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Miss. Shilpi 

[VENU K]

I endorse the views of the experts. As far as question number 3 is concerned my views are that the action could be questioned under violation of Principles of Natural justice because the officer who did the investigation sitting on judgement would certainly have bias. Generally, In order to avoid allegation of bias an audit Officer would issue SCN but the adjudication would be done by Jurisdictional Officer.

Further, any Officer cannot be a Proper Officer under GST for issue of SCN also. Jurisdiction flows from the specific section invoked. An SCN under Sec 73 is an affirmation by the Department that tax evasion has not occurred. In such situations one must be very careful to verify whether the officer issuing SCN was the proper officer.

For example DGGI enforcement issuing an SCN under Sec 73 after search and seizure is an admission that there was no tax evasion as alleged under INS 1 issued in the first place , which will vitiate the entire proceedings.

[Ganeshan Kalyani]

You should bring to the notice of the officer about non-availability of the order in the common portal and so you are unable to file an appeal. Generally, exparte order is passed when the taxpayer do not appear before the officer. Minimum a letter stating the cause for non attendance should have been filed with the department. Now approach the officer and pray for making available the order in the portal.

AI Summary

Validity of consolidated SCN and ex parte order: procedural defects and natural justice grounds may permit challenge. Questioning the validity of a consolidated SCN and consolidated ex parte adjudication under Section 73(9) of the KGST Act for two financial years, experts identify fatal procedural defects-notably absence of an order number and lack of opportunity to the taxpayer-that impede appeal rights and engage principles of natural justice. Consolidation may be permissible per recent High Court rulings, but the SCN's validity requires examination of the notice. Remedies include seeking portal access, administrative regularisation, or judicial challenge with condonation based on medical grounds.