Date: 19 October 2022

Key Pointers–

• In some cases, the authority which initiates the investigation is also issuing recurring SCN whereas in some other cases, it is being left for the concerned jurisdictional Tax authority, who is administrating the taxpayer to issue recurring SCN. This may create confusion and may lead to a situation in which none of the authorities issue the recurring SCN in timely manner.
• Thus, the office of Goods and Service Tax has issued uniform practice to be followed in such matter. The matter was deliberated by the GST Council in its 47th meeting.
• A taxpayer located within a state is open to enforcement action by both State tax authorities and by the Central tax authorities (and vice versa). In such cases, all the consequential action including, but not limited, to appeal, review, adjudication, rectification, revision will lie with the authority which was initiated the enforcement.
• Refund in such cases may, however, be granted only by jurisdictional tax authority administrating the taxpayer.
• In case of recurring SCN, which does not involve fresh investigation and therefore the recurring SCN are issued by the actual jurisdictional authorities, as they will be in a position to access the records and returns of the taxpayer and to check whether the issuance of recurring SCN is based on the said period.
• In case the same authority who has taken enforcement based action, but does not administer the tax payer, the recurring SCN may be issued by the concerned jurisdictional tax authorities administering the tax payer.
• Even if the investigation conducted and SCN issued by central tax authorities the recurring SCN may issue by only the jurisdictional tax authority administering the taxpayer and if such jurisdictional tax authority is State tax, recurring SCN may be issued by the concerned State tax authority.