GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings [Read Circular]

The State GST department of Tamil Nadu has issued instructions regarding the assessment and adjudication proceedings under the Tamil Nadu Goods and Services Tax Act, 2017 and other legacy Acts for adherence of the Principles of Natural Justice.

The circular issued on Thursday stated that “It has come to notice that, in many cases the Assessment/ Adjudication orders are passed by the Proper Officer without properly following the principles of Natural Justice, in letter and spirit, which results in the challenging the proceedings by the assessees, by way of filing writ petition before the Hon’ble High Court under Article 226 of the Constitution of India. In such cases the Hon’ble High Court has set aside the proceedings and directed to redo the assessment process de-novo.”

The department pointed out that the Natural Justice is the essence of any fair adjudication and it is fundamental for the Adjudication Process.

“The main purpose of following the principles of Natural Justice is to protect the rights of the assessee against any arbitrary assessment and thereby, ensure fair and equitable administration of justice.”

The provisions of the TNGST Act, 2017 as well as the provisions of TNVAT Act, 2006, provides for the issue of notices and also opportunity of being heard, before fastening any liability on the assessee. Section 75 of the TNGST Act, 2017, which deals with “General provisions relating to determination of tax” provides for opportunity of hearing, where a request is received or where any adverse decision is contemplated, grant of sufficient time, that no demand shall be confirmed on the grounds other than the grounds specified in the notice and the order shall set out the relevant facts and the basis for the decision.

“It is utmost important to adhere to the principles of Natural Justice for the reason that “justice must not only be done it must also appear to be done as well”. The Adjudication / Assessment process should necessarily include the following, in order to comply with principles of Natural Justice,” the circular said.

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