Kerala GST: Uniform Numbering System for SGST Show Cause Notices & Orders

Introduction: The Kerala GST Department has introduced new guidelines for numbering Show Cause Notices (SCNs) and Adjudication Orders under sections 73 and 74 of the SGST Act. These guidelines aim to bring uniformity and ease in tracking these crucial documents, essential for subsequent legal processes.

Detailed Analysis:

1. Current Scenario: Previously, there was a lack of uniformity in numbering SCNs and Orders, leading to difficulties in tracking and identification. The manual preparation of these documents without a unique identifier posed challenges in maintaining records.

2. Purpose of the Guidelines: The primary objective of these guidelines is to ensure every SCN and Adjudication Order carries a distinct and easily identifiable number. This will facilitate efficient tracking throughout the litigation cycles, even in tribunals and courts.

3. Key Instructions:

• SCNs will follow a specific format, incorporating details like vertical, district, office, and issuing officer, along with a unique sequential number.
• Adjudication Orders will also adhere to a similar format, ensuring clarity and uniformity.
• Maintenance of registers for issuing SCN and Order numbers in respective offices is mandated, along with periodic verification by supervisory authorities.

4. Implementation Date: The new numbering system will be effective from April 1, 2024, aiming to streamline processes and enhance transparency in SGST proceedings.

Conclusion: The introduction of standardized numbering for SGST SCNs and Adjudication Orders marks a significant step towards efficient administration and transparency in tax proceedings. By adopting these guidelines, the Kerala GST Department aims to simplify tracking and ensure accuracy in legal processes, benefiting both taxpayers and regulatory authorities.

SGST/2397/2024-PLC9

I/247091/2024

KERALA GST
State goods & Services tax

Office of the Commissioner of State Tax
State Goods and Services Tax Department
Tax Towers, Karamana, Thiruvananthapuram.
E-mail: cstpolicy.sgst@kerala.gov.in
Ph: 0471-2785276

File No. SGST/2397/2024-PLC9

Circular No: 04/2024 | Dated: 30-03-2024

Sub: Issuance of Show cause Notices/Orders u/s 73 & 74- Numbering of Show Cause Notices/Orders – guidelines issued- reg:

1. Show cause notices u/s 73 & 74 of the SGST Act are being issued by the Intelligence and Enforcement, Audit and Taxpayer Services verticals of the Department. Rule 142 (1)(a) of the Kerala GST Rules mandates serving of a summary of notice electronically in Form GST DRC-01 along with the notice issued under Section 73 or Section 74 of the State GST Act. The Notice mentioned above is being prepared manually by the proper officer and uploaded in the portal.

2. Further, the adjudication of Show Cause Notices issued u/s 73 /74 of the SGST Act by various verticals are being done by the Taxpayer Services Vertical. The adjudication order is prepared manually and uploaded in the portal by the proper officer along with Form DRC-07. These notices and orders form the basis for all further litigation in that particular matter even in the tribunal and courts.

3. Under the circum stances, it is essential that Show Cause Notices and adjudication orders are duly recorded and tracked through litigation cycles that may last many years. For this purpose, it is necessary that Show Cause Notices and adjudication orders (Order in Original) are numbered in such a manner that they have a unique, easily identifiable number. At present however, there is a lack of uniformity among the State GST formations regarding numbering of Show Cause Notices and Adjudication Orders. Proper officers are currently uploading SCNs and Orders without providing any serial number for identification purposes. Since, these notices and orders are prepared manually, no online reference number will get generated on uploading the document from the GSTN backend portal.

4. As the notices and orders are the basis for subsequent legal processes, it is vital to identify the details such as the name of district, the vertical from which the notice/order was issued, designation of the issuing authority, unique serial number of the notice/order etc. from the number itself. Therefore, to bring in uniformity in creating the serial number of the Notices and Orders u/s 73 & 74 of the Act by the Intelligence and Enforcement, Audit, and Taxpayer services verticals of the Department, the following instructions are issued;

a. Every Show Cause Notice u/s 73 and 74 annexed with the DRC-01 issued from the backend portal shall carry distinct and unique SCN number.

b. The Format of the Show Cause Notice Number is as follows:- SCN/Short form of Vertical/Short form of District/Short form of Office/Unique number – Short form of Issuing officer. The unique number shall begin with 01 and continue sequentially until the end of the calendar year. The Format of number with examples is shown in Annexure-1.

c. A register for issuing Show cause Notice Number must be maintained in every office where an officer with power to issue an SCN is present.

d. The Format of Show Cause Notice Register is shown in Annexure-II.

e. Every Adjudication Order u/s 73 and 74 annexed with the DRC-07 issued from the backend portal shall carry distinct and unique order number.

f. The Format of the Adjudication Order Number (Order-in-Original number) is as follows:- OIO/Short form of Vertical/Short form of District/Short form of Office/Year/Unique number – Short form of Issuing officer. The unique number shall begin with 01 and continue sequentially until the end of the calendar year. The Format of number with examples is shown in Annexure-III.

g. A register for issuing Adjudication Order Number must be maintained in every office in Taxpayer Services vertical in the Format shown in Annexure IV

h. The supervisory authorities shall periodically verify the SCN Register and Adjudication Order Register and ensure that the Show Cause Notices and Adjudication Orders are numbered correctly.

5. The new numbering system of Notices and Orders shall come into force from the 1st of April 2024.

ABRAHAM RENN SIRS
Commissioner (I/c)

To

All concerned.

Annexure-1

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–

Annexure-II

Annexure III

Annexure IV

Order in Original Register