LITIGATION MANAGEMENT IN GST REGIME (PART -5)

[Dr. Sanjiv Agarwal]

Validity of Adjudication / Assessment proceedings

Section 160 of CGST Act, 2017 provides that in certain situations, assessments, adjudication, summon or any other related proceedings shall not be held invalid or deemed to be invalid because of any mistake, defect, omission etc. if done, in accordance with the purpose, intention or requirement of the law.

Statutory Provision (Section 160)

Assessment proceedings, etc., not to be invalid on certain grounds (Section 160)

160. (1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of this Act shall be invalid or deemed to be invalid merely by reason of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law.

(2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication.

Types of Proceedings Covered

In certain situations, service of any notice or order or any other communication cannot be questioned, if it has already been acted upon by the person to whom it has been issued.

Following proceedings are covered:

• Assessment
• Appeal
• Re-assessment
• Rectification
• Adjudication
• Notice
• Review
• Summons or
• Revision
• Other proceedings

Following actions in respect of specified proceedings are covered:

• Action done
• Accepted
• Made
• Issued
• Initiated
• Purported to have been done

Impact of Section 160

1. Such actions in relation to specified proceedings shall not be valid or deemed to be invalid
2. Such validation may be due to any reason by way of any mistake, defect or omission
3. Such actions shall be in substance and effect in conformity with the intention, purpose and requirement of GST law or any other old law.

Any notice, order or communication cannot be called in question if action has already been taken upon by the person to whom it is issued. This will also apply in the cases where it was not called in question in the past in earlier proceedings or earlier proceedings have been finalized.