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Contest Time barred ADT-02

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Ramanathan Seshan

Executive

69 Points Posted on 04 August 2025

Dear Experts,

Dear Experts,

We received ADT-01 on 03-01-2024, intimating us about the conduct of a departmental audit for FY 2021–22, with a request to submit the relevant details by 23-01-2024. We submitted the required information on 23-01-2024.

Subsequently, we received the audit observations in Form ADT-02 on 25-07-2025.

In this context, would the issuance of ADT-02 be considered time-barred under Section 65 of the CGST Act read with Rule 101 of the CGST Rules? As per my understanding, the audit should be completed within 3 months from the date of commencement (extendable to 6 months with approval). In our case, the gap between submission and issuance of ADT-02 is over 18 months.

Now how do i contest the ADT-02 and SCN if issued under 73/74, what should be my reply.

Regards,

S Ram

Replies (2)

Quick Summary

This discussion addresses whether an ADT-02 audit observation, received over 18 months after submitting required details for an FY 2021-22 audit, is time-barred under Section 65 of the CGST Act. The key to contesting this, and any subsequent SCN, lies in demonstrating that the delay in issuing ADT-02 was unreasonable and contrary to legal provisions. The response should clearly present this argument, supported by the relevant legal framework and the specific facts of the case.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 04 August 2025

The key to contesting the ADT-02 and any subsequent SCN lies in demonstrating that the delay in issuing ADT-02 was unreasoble and contrary to the legal provisions governing the audit process under the CGST Act and Rules. The response should be crafted to clearly present this argument, supported by the relevant legal framework and the facts of the case.