ADJUDICATION OF SHOW CAUSE NOTICE - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

13. ADJUDICATION OF SHOW CAUSE NOTICE 13.1. The Proper Officer shall grant personal hearing, if the noticee (person to whom the show cause notice is issued) so desires, otherwise also, Proper Officer may give opportunity of personal hearing. The Proper Officer shall determine the tax payable after considering all submissions made by the noticee and pass suitable Adjudication Order, as prescribed under Section 73(9) or Section 74(9) of the CGST Act, 2017. 13.2. The show cause notice pertaining to demand of tax or wrongly availed or utilized input tax credit issued under Section 73 of the CGST Act, 2017, shall be adjudicated within three years from the due date of filing of the Annual Returns for the relevant financial year. If the case is related to the erroneous refund received by the taxpayer, the case shall be adjudicated within three years from the date when the erroneous refund was credited in the account of the taxpayer. (Refer Section 73(10) of the CGST Act, 2017) 13.3. The show cause notice pertaining to demand of tax and/or wrongly availed or utilized input tax credit issued under Section 74 of the CGST Act, 2017, involving suppression of facts or willful misstatement or fraud, etc. shall be adjudicated within a period of five years from the due date of filing of the Annual Returns for the relevant financial year. If the case is related to erroneous refund received by the taxpayer, involving suppression of facts or willful misstatement or fraud, etc. the case shall be adjudicated within the period of five years from the date when the erroneous refund was credited in the account of the taxpayer. (Refer Section 74(10) of the CGST Act, 2017). 13.4. The show cause notice issued under Section 76 of the CGST Act, 2017, shall be adjudicated within one year from the date of issue of the show cause notice. (Refer Section 76(6) of the CGST Act, 2017) 13.5. The Summary of the Adjudication Order shall be uploaded electronically in FORM GST DRC-07 , prescribed under Rule 142(5) of the CGST Rules, 2017, specifying the amount of tax, interest and penalty payable by the person. Such an order shall be treated as the notice for recovery.