• Notification Date: 14-03-2022
  • Notification No: N/A

Adjudicating Notice Power of Auditing Officers Dismissed

The jurisdictional tax officers are not entitled to the power of issuing adjudicating notices under the Goods and Services Tax (GST) system. This has brought great relief among the assessees.

As per a recent circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the power of issuing adjudicating notices has been taken away from the auditing officials. At present, the central tax officers of audit commisionerates as well as the Directorate General of Goods and Services Tax Intelligence (DGGI) are only eligible to issue notices for raising additional demand. The assessee may approach the respective officer to rectify the same in the earlier scheme of things as soon as the notice is issued by the auditing officer.

According to the statement of the experts, the auditing and investing officers were not previously adjudicating the notices following the law. They have been retaining the demands mentioned in the notices.

Rajat Mohan, the senior partner of AMRG and Associates stated that the power of the audit commissionerates and investigating officers were arbitrary previously. Now, their powers have become limited to issuing show-cause notices to the assessees. The power of adjudication has been handed over to the competent jurisdictional tax officers.

This new decision taken by the CBIC would restore respite to millions of taxpayers. Their tax return files would be scrutinized minutely and transparently by the officers of the intelligence and audit wing.

The jurisdictional officers have been empowered with the capability to adjudicate notices all over India. The officers may adjudicate the notice across the country in case of issuing multiple notices are being issued for the same case. The officers may also adjudicate notices if the principal place of the business comes under the jurisdiction of multiple officers.