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TMI BlogTamil Nadu Government has recently issued guidelines - adjudication proceedings highlighting the qualities of a good order, show cause notice, proceedings etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... ime 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 rationale for the decision arrived in the adjudication process. (iii) Fairness and Impartia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal. After issuance of Show cause notice, the adjudicating authority shall issue a speaking orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 made. (vi) Conclusion of the adjudicating authority based on the analysis as stated above. (vii) Value of supply for which notice issued has to be mentioned and applicable tax, interest and penalty has to be quantified. Further HSN/SAC dealt by the taxpayer, for the respective com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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 authority by way of Record of Proceedings. Such Notes can be required to be authenticated by the taxable person which will be a token of proper hearing. Copy of such Record of Personal Hearing , signed by the Officer and Taxpayer/Authorised Representative, shall be retained in the Assessment records and a copy of it shall be shared with the taxpayer as well to ensure transparency. e. Cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 applicability to the proceeding has to be provided in detail and acted accordingly. l. Value of supply has to be mentioned and applicable tax, interest and penalty has to be quantified. Further, HSN/SAC, for the respective Commodity / Service dealt by taxpayer in which the discrepancy is pointed out must be clearly mentioned along with appropriate rate of tax. m. The arithmetical calculation as well as logical conclusion based on which the issue is decided against the taxpayers has to be resorted to fix the liability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 with the main issue. k. Discuss issue-wise along with evidence and facts. Judgments, if any cited, shall be discussed in depth relating to the issue. l. Furnish the tax liability calculation. Quantify the tax, interest and penalty payable by the taxable person. If tax demand is yet to be paid, interest may not be quantified as it will be accruing every passing day till the date of payment. Hence, as regards interest not quantified cases, a mention that Interest at applicable rates as per Section 50 (1) or (3) would be payable will be quintessential. m. Specify the Authority before whom an appeal can be filed and the time limit within which it has to be filed. 7. The above instructions are meant to be guidelines for Adjudicating Authorities and shall not be cited by any P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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