Issuance of Form ASMT-10 Notice is Mandatory During Scrutiny of GST Returns
By: Admin
September 23, 2024 | Important Pronouncements | 4 Min Read
The Hon’ble Madras High Court in M/s Mandarina Apartment Owners Welfare Association v. Commercial Tax Officer/State Tax Officer (Writ Petition No.15307 & 15330 of 2024) ruled that the issuance of Form ASMT-10 is essential when discrepancies arise during the scrutiny of returns under Section 61 of the CGST Act, 2017. The show cause notice failed to refer to scrutiny, resulting in the scrutiny’s conclusions being invalid. However, since the petitioner had the chance to respond, no prejudice was caused. The case was remanded for reconsideration.
Key Highlights:
- Mandate of Form ASMT-10: Discrepancies found during return scrutiny under Section 61 require an ASMT-10 notice.
- Petitioner’s Contention: Proceedings based on scrutiny should be supported by an ASMT-10, and failure to issue one invalidates the process.
- Court’s Decision: Orders were set aside or remanded due to procedural lapses. The Petitioner was allowed to submit additional responses.
Legal Precedents:
- Calcutta High Court and Gauhati High Court rulings confirm ASMT-10 as mandatory in return scrutiny cases.
- Divergent judgments by Allahabad and Andhra Pradesh High Courts suggest scrutiny and adjudication are distinct processes.
Our Comments:
The CGST Rules 2017, especially Rule 99, outline the procedure for scrutinizing returns. The officer must issue an ASMT-10 notice upon identifying discrepancies, allowing the taxpayer to respond and correct the issues. This ensures transparency and due process during tax adjudication.
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