The Commissioner of Commercial Tax, Madhya Pradesh, has issued fresh directions regarding the handling of cases initiated under Section 70 of the Madhya Pradesh Goods and Services Tax Act, 2017 stating that the adjudication in summons cases to be handled by jurisdictional officers.
The circular modifies an earlier order issued on January 12, 2024 and lays down a revised mechanism for adjudication and recovery in summons-related cases.
The communication, issued from the Office of the Commissioner, Commercial Tax, Madhya Pradesh, is addressed to all Divisional Joint Commissioners and officers of the Anti-Evasion Bureau across the State.
Under the earlier circular dated January 12, 2024, Anti-Evasion Bureau officers conducting investigations under Section 70 were completing summons proceedings and thereafter allocating cases for adjudication under provisions such as Sections 73, 74, 74A, 122 and 127 to officers other than those involved in the original investigation.
The Commissioner noted that adjudication cases arising from summons proceedings were being assigned to different officers, creating administrative and procedural challenges.
To address these issues, the Department has now revised the process and introduced a more centralized framework for adjudication.
Adjudication Cases to be Assigned to Concerned Circle and Divisional Officers
The revised directions provide that once proceedings under Section 70 are completed, cases requiring adjudication shall be allocated to the designated officers posted in the concerned Circle and Divisional Offices.
This marks a shift from the earlier practice where such matters could be assigned to other officers after the investigation stage.
Allocation to Follow Monetary Jurisdiction Norms
The circular further mandates that the allocation of adjudication cases shall be undertaken by the Divisional Joint Commissioner in accordance with the monetary limits prescribed under the Department’s adjudication circular and jurisdictional guidelines.
The move is expected to ensure uniformity and consistency in the handling of GST disputes across Madhya Pradesh.
Recovery Proceedings to Remain with Enforcement Officers
One of the most notable changes introduced by the circular relates to recovery proceedings.
The Commissioner has clarified that after completion of summons proceedings, all statutory actions connected with adjudication and the consequential recovery of tax demand will continue to remain the responsibility of the officers who originally handled the enforcement proceedings.
This means that while adjudication may be allocated according to jurisdictional norms, the enforcement machinery that initiated the proceedings will continue to oversee recovery-related actions arising from the adjudication order.
Objective of the Circular
The revised framework appears to be aimed at:
- Ensuring accountability in GST enforcement matters.
- Reducing procedural delays in adjudication and recovery.
- Establishing a clear division of responsibilities between adjudicating authorities and enforcement officers.
- Bringing greater consistency in the processing of cases initiated through summons proceedings under Section 70.
Importance for Taxpayers
Section 70 of the GST Act empowers tax authorities to summon persons whose attendance is considered necessary during an inquiry. Such proceedings often lead to adjudication under Sections 73 or 74 relating to tax demands, penalties, and alleged tax shortfalls.
Membership Required to Access Circular & Copy
To view the complete Circular and Download Circular Copy, you must have an active membership. Please subscribe to continue.
