TaxTMI 
TaxTMI 
Tamil Nadu Government has recently issued guidelines - adjudication proceedings highlighting the qualities of a good order, show cause notice, proceedings etc.
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....ide such notices / orders, resulting in a loss of efforts and time of Proper Officers and revenue to the Department. Hence, the following guidelines are issued to make the adjudication process more transparent, reduce the litigations and realize revenue to the Exchequer. 1. QUALITIES OF A GOOD GST ORDER: (i) Clarity and Conciseness: It is of utmost importance to maintain clarity and simplicity while drafting GST adjudication orders. Usage of Clear and unambiguous language ensures that taxpayers can easily comprehend the officer's decision. Also avoiding unnecessary elaboration helps to maintain the focus on the core reasoning behind the orders enhancing its effectiveness and ensuring efficient communication of the decisions to the taxpayer. (ii) Logical Reasoning: A well-drafted GST adjudication order shall provide a logical and reasoned explanation for the decision arrived by the proper officer. It should meticulously detail the facts of the case, citing relevant legal provisions from the GST Acts and Rules and illustrating how those provisions were applied to the specific circumstances at hand. By doing so, the order establishes a clear and compelling rationa....
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....promptly after the conclusion of the proceedings. This minimizes uncertainties and delays for the parties involved. (xii) Correctness: Above all, the adjudication order must be legally sound. It should be a well-reasoned and accurate interpretation and application of the relevant provisions of the GST Acts and Rules specific to the case at hand. (xiii) Language and Structure: The order should be well-structured and utilize appropriate legal language and terminology to convey the message with utmost clarity and precision. A professional and respectful tone should be maintained throughout, avoiding dismissive or accusatory language. Conclusion: These qualities collectively contribute to a well-drafted GST adjudication order and a process that fulfills its purpose within the legal system. This ensures a fair, transparent and efficient GST administration. 2. ROLE OF ADJUDICATING AUTHORITY: As per Section 2 (4) of The Tamil Nadu Goods and Services Tax Act, 2017 "adjudicating authority" means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Commissioner, Revisional Authority, the Authority for A....
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....tion under Article 226 of the Constitution of India, by the taxable person before the Hon'ble High court. Therefore, the orders to be passed by the Adjudicating authority shall always be a speaking order. 3. GENERAL CONTENTS EXPECTED IN A SHOW CAUSE NOTICE: (i) Brief introduction about the taxable person and their nature of business. (ii) The period for which the proposed action and statutory provision (Relevant Section) under which notice is being issued has to be mentioned. The issue shall be properly demarcated for invoking Section 73 or Section 74 as the case may be, by the Adjudicating authority. Specific reference to reason of fraud or any wilful misstatement or suppression of facts shall be established in the notice for invoking Section 74 of the GST Act. (iii) The records or evidences which is relied on by the adjudicating authority for the proposed action has to be referenced. (iv) The self-declaration, if any, made by the taxable person to the department which is sought to be disagreed by the adjudicating authority has to be stated. (v) Detailed analysis of evidences/records based on which the proposed action is sought to be....
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....aking the assessment, opportunity of being heard in person, grant of reasonable time to file reply, requests for adjournment etc., are properly available in the adjudication process. The detailed guidelines already issued by the Principal Secretary/ Commissioner of Commercial Taxes in Circular No. 12/2022 dated 26.09.2022 relating to the adherence to Principles of Natural Justice in the adjudication process shall be followed in letter and spirit. b. The Proper Officer shall ensure that the request for appearance by authorized representative under Section 116 of the GST Act, 2017 are properly considered in the adjudication process. c. Once the taxable person has filed his objections, the authority shall carefully analyse the contentions raised by the taxpayer against the proposal and shall have a cross check with the facts already available. If any ambiguity in the taxpayer's contention needs further clarification, it can easily be done at the time of personal hearing. This would give a better understanding of the matter at his disposal. d. Subsequently, oral submissions made by the taxable person at the time of Personal hearing, if any, shall be reduced to writing by the a....
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....reply and evidences and need to be grouped together. It must be ensured that all the contentions raised by the taxpayer has been taken up and listed. h. After listing all issues to be decided upon, the adjudicating authority shall segregate the issues broadly in two categories:- (i) One category in which there is no dispute between Department and taxable person; and (ii) Other category in which the dispute between Department and taxable person persists. i. The issues, on which there is no dispute, may be summarized in one or two paragraphs of the findings. The remaining issues, where dispute between the Department and taxable person exists, shall be listed. At this stage, the sequencing of the issues is required to be considered carefully. j. Now, the issues listed can be taken up chronologically and answered one by one with consideration to the evidences, records and other documents already in possession. Resultantly, the finding is to be explicitly arrived and recorded. k. If any proceedings are made in pursuance of the directions of the Appellate Authority and Hon'ble High Court, the fact of such directions and its applicabil....
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.... i. Notice for checking of accounts/audit. ii. Adjournment requests. iii. Adjournments granted. iv. External information received/ details of e-way bill. v. Statement recorded. vi. Extract /narration in accounts. vii. Invoices of Inward and Outward supply. viii. Inspection reports. ix. Cross examination request. x. Pre-assessment/penalty notices. xi. Replies filed by the taxpayer. d. Narrate the name and address, GSTIN, and brief business practice, person to whom the order is intended and the assessment year to which the order relates. e. The Adjudication order shall contain a bilingual preamble in Tamil and English for better understanding of the taxpayers (Model enclosed as Annexure) f. Narrate the contents of the notice. g. Narrate taxpayer's reply. h. Personal hearing and Record of personal hearing. i. Briefly discuss and decide on the issues conceded by the taxable person. j. Issues framed on matters in which there is difference between adjudicating authority and the taxable person. Connected issues to be answered along w....