CBIC Designates Proper Officers for Action Under Sections 74A, 75(2) and 122 of CGST Act

3. Clarification under Section 75(2)

As per the circular, under Section 75(2) of the CGST Act:

• The same officer who handled the original adjudication shall continue to act as the proper officer for all subsequent proceedings related to that case.
  This provision ensures continuity of authority and avoids procedural duplication or inconsistency.

4. Procedure for Issuing Subsequent Statements under Sections 73, 74, and 74A

The circular further clarifies the procedure and officer hierarchy for issuing subsequent statements following initial show cause notices:

• The determination of the proper officer will be based on the amount of tax demanded, excluding penalties.
• If, during the course of proceedings, the tax amount exceeds the prescribed monetary limit for that officer, the case must be transferred to a higher authority through a corrigendum.
• In cases where the show cause notice is issued by an Audit Commissionerate, the jurisdictional officer of the noticee will issue subsequent statements. However, the case will remain answerable to the same adjudicating authority to maintain consistency.

5. Objective of the Circular

This circular aims to:

• Eliminate ambiguity regarding officer jurisdiction under different sections,
• Ensure efficient and standardised adjudication,
• Prevent procedural overlaps and jurisdictional conflicts, and
• Facilitate faster disposal of cases through defined accountability.

6. Conclusion

Through this circular, the CBIC has formally assigned proper officers at various hierarchical levels to exercise powers under Sections 74A, 75(2), 122 of the CGST Act, 2017, and Rule 142(1A) of the CGST Rules, 2017.

By defining monetary limits, jurisdictional clarity, and procedural continuity, the Board has strengthened the framework for transparent and efficient tax adjudication under the GST regime.