Top Stories Seeking Adjournment against a GST Show-Cause Notice [Find Draft Format Here] Did you recently receive a GST Show-Cause Notice from the Department? Read on to know all about show-cause notices under the GST Regime and how to draft a reply towards the same By Avinash Kurungot – On January 15, 2025 2:33 pm – 2 mins read A Show-Cause Notice (SCN) is an essential instrument used by the revenue authorities under the Goods and Services Tax (GST) framework to initiate proceedings against taxpayers for alleged non-compliance. It serves as a formal communication that details the grounds of non-compliance and provides an opportunity for the taxpayer to present their defense. However, procedural intricacies often necessitate adjournments, as businesses strive to ensure compliance while managing operational and administrative constraints. Drafting GST Replies Simplified for Professionals – Enroll Now Understanding the Context of Show-Cause Notices SCNs are issued in cases where the revenue has reason to believe that the taxpayer has contravened provisions of the GST provisions. Common scenarios include non-payment of taxes, incorrect input tax credit claims, or failure to file returns. An SCN typically outlines the alleged violations and stipulates a deadline for the taxpayer to respond. Who is Affected? The issuance of a SCN directly affects businesses and individuals who are registered under the GST regime.

The affected entities could include anyone from small-scale enterprises to large corporations. Failure to respond within the stipulated time can lead to adverse orders, including the levy of penalties, interest, and tax liabilities. Immediate Reactions and Challenges Upon receiving an SCN, taxpayers often feel a sense of urgency and stress. The need to gather relevant documentation, consult experts, and draft a comprehensive reply within a limited timeframe can be overwhelming. In many cases, taxpayers are left with no choice but to seek adjournments. Drafting GST Replies Simplified for Professionals – Enroll Now Circumstances Leading to an Adjournment Adjournments are sought by taxpayers for various legitimate reasons, such as time for engagement of tax professionals. The preparation of a detailed reply often requires the involvement of Chartered Accountants or legal experts whose availability can be challenging, particularly during peak filing or audit seasons. Unforeseen circumstances like health issues or personal emergencies may also impede the timely preparation of a response. Additionally, verifying historical records, invoices, and other documents to substantiate claims often requires considerable time, especially for businesses with high transaction volumes. Legal Provisions and Precedents Under Section 75 of the CGST Act, 2017, taxpayers are entitled to request adjournments for valid reasons.

Courts have consistently upheld the importance of natural justice, emphasizing the need for revenue authorities to provide reasonable opportunities for taxpayers to present their case. The Hon’ble Allahabad High Court in M/s Mittal Plywood and Furniture Vs. State of U.P. and Another in Writ Tax No. – 906 of 2022, and the Hon’ble Kerala High Court in M/s Damodar Corporation v/s Union of India & Ors. (WP(C).No.18308 of 2020(K), have both reinforced this principle, quashing orders where adjournments were unreasonably denied. Drafting GST Replies Simplified for Professionals – Enroll Now Conclusion A well-drafted request for adjournment can prevent procedural lapses and ensure compliance with GST regulations. Taxpayers must leverage the provisions of the law and judicial precedents to seek reasonable time for preparing their defense. By doing so, they can mitigate the risk of adverse outcomes while upholding the principles of natural justice