Drc 01A issued without Adt-01 by audit authorities

[rajat solanki]

we have recd an notice for 21-22 where audit authorities have directly issued DRC-01A without doing audit will they be treated as proper officer as per 65(7) and 73 to issue SCN shouldnt the audit and adjudication be different than the audit authority what should our position if they have taken everything from portal like balance sheet and profit loss from 9c and asking about 180 days sundry creditors etc when no books were called for

AI Summary

DRC-01A can be issued without prior Adt-01; officer qualifies as 'proper officer' under sections 65(7), 73, 74 and s.6 A taxpayer queried issuance of DRC-01A without a prior Adt-01 and whether the issuing audit authority qualifies as the 'proper officer' under sections 65(7) and 73 for issuing a show-cause notice. The forum response states there is no formal separation between audit and adjudication authorities: the officer issuing DRC-01A may proceed under sections 65, 73 and 74 as empowered by section 6 of the CGST Act. An audit is not a prerequisite to initiate adjudication; notices can be based on returns, inspection reports or other information indicating suppression or incorrect ITC, subject to authorization by a competent superior.