The Goods and Service Tax (GST) investigation wing under the Central Board of Indirect Taxes and Customs (CBIC), has asked field units to issue show cause notices in time-barred cases that are pending investigation and warrant so.
The wing has asked the responsible authority to constitute an action plan to ensure that no cases are pending investigation beyond one-year. As it is found that notices have been issued in only a few cases of tax evasion and availing input tax credit fraudulently.
The Board noted that the last date for filing the annual returns for the FYs of 2017-18, 2018-19 and 2019-20 was already over, and therefore the time limit of three or five years for issuing demand notices would be approaching fast and any delay in issuing show cause notices would leave little time with the adjudicating authority to pass orders.
In this regard, a notice has been issued on 22nd September directing, principal director general, director general, principal chief commissioners and chief commissioners within their jurisdictions to, “take stock of pending investigation cases/ other cases that warrant issuance of show cause notices and take appropriate action to ensure timely completion of investigations and issuance of show cause notice well before the last date.” As reported by ET.
Further the Board said, “This might result in a situation where either the adjudicating authority is not able to pass orders within prescribed time period or quality of adjudication suffers.” “It is felt that the present situation warrants for extra efforts on the part of field formations and strict monitoring at supervisory level,” it added.