The Central Board of Indirect Taxes and Customs (CBIC) published the directions upon issuance of Show Cause Notices (SCNs) within the said time.
A brief analysis to sought the trend for the event of GST evasion and fraudulent ITC claim registered along with the number of SCNs given with respect to the FY 2017-18 (w.e.f. July 2017), 2018-19 & 2019-20, is executed and it is seen in GST evasion registered cases and in the fake input tax credit cases registered in the given period, SCNs (Show Cause Notice) is provided for some cases.
Clearly beneath the provision of section 74 of CGST act 2017 which is the prolonged clause period the input tax credit frauds or GST evasion comes. But there are some of the circumstances in which issuance of the notice beneath section 73 of the CGST act 2017 is meant.
The board has investigated the concern in the framework of issuance of SCNs in the meagre number of cases booked/detected which is shown in the previous paragraph. It might be seen that the due date for furnishing the yearly returns for the FYs of 2017-18, 2018-19 & 2019-20 has been finished previously. As a result, the time limit for 3 years or 5 years of issuance of order beneath Section 73 & Section 74 of the CGST Act, 2017 has came into effect.
If the issuance of SCNs is forced to the due dates it might leave very little time with the adjudicating head to pass the orders in the deemed time which is written in sub-section (10) of Section 73/ Section 74. It may provide the circumstances in which either the adjudicating council is unable to pass the orders in the said time or the quality of adjudication faces issues. It is seen that the current circumstances warrant more efforts upon the case of filed building and tough tracking on the supervisory level.
The board specified that the principal Director General / Director General(s)/Principal Chief Commissioner(s)/Chief Commissioner(s) in their jurisdiction might take stock of due investigation cases that warrant issuance of show cause notices and opt for the specific measure to ensure that examination gets finished in time and SCNs issuance will be done prior to the due date. The respective Pr. Chief Commissioners/Chief Commissioners might bring the measures so that there is no case left for investigation beyond 1 year. There is no need to mention once the SCN is provided then timely adjudication should be followed.
