Raj Jaggi
Quick Summary
When Authority Determines Legality In tax administration, the validity of a proceeding depends not only on whether the tax has been accurately assessed but also on who has the authority to make that assessment. A show-cause notice issued by an unauthorised officer can render the entire proceeding v
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FAQ :
Circular No. 254 clarifies which specific officers are authorized to issue show cause notices, adjudicate cases, and impose penalties under various sections of the CGST Act and Rules, and it prescribes monetary limits for these actions.
A "proper officer" is defined as the Commissioner or any central tax officer designated to that role by the Commissioner or the Board, according to Section 2(91) of the CGST Act.
For Section 74A, Superintendents can adjudicate up to Rs 10 lakh, Deputy/Assistant Commissioners from above Rs 10 lakh to Rs 1 crore, and Additional/Joint Commissioners for cases above Rs 1 crore.
For cases involving both CGST and IGST, the combined amount of both taxes is considered to determine the competent adjudicating authority, not assessed separately for each component.
According to Section 75(2) and clarified by Circular 254, the same adjudicating authority that originally handled the proceedings will continue to determine the tax liability, even if the case is reclassified under Section 73.
Yes, Circular 254 specifies the officers who are competent to issue pre-show cause notice communications in FORM GST DRC-01A, ensuring the process begins with the appropriate officer.
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