The Classic Partners LLP
GST Adjudication Support
Comprehensive GST adjudication support — from drafting written submissions to representing your business in personal hearings under Section 75 of the CGST Act. Our Chartered Accountants build a complete defence file, manage every stage from DRC-01 to DRC-07, and protect your business from inflated demand orders.
Get Adjudication SupportWhat is GST Adjudication?
Adjudication is the formal quasi-judicial process by which the proper officer determines the tax, interest, and penalty payable by a taxpayer after issuing a Show Cause Notice. It is governed primarily by Sections 73, 74, 74A, and 75 of the CGST Act, and is the stage at which a taxpayer's written submissions and oral arguments are converted by the adjudicating authority into a quantified, binding order.
The quality of representation at the adjudication stage substantially shapes the size of the demand and the strength of any future appeal. A well-drafted reply, supported by reconciliations, documentary evidence, and case-law, can lead to the SCN being dropped, partly confirmed, or significantly reduced — long before appellate forums become relevant.
Stages of the Adjudication Process
- DRC-01A — pre-SCN intimation; opportunity for voluntary payment to avoid escalation.
- DRC-01 — formal Show Cause Notice issued under Section 73 / 74 / 74A.
- DRC-06 — taxpayer's written reply to the SCN with supporting documents.
- Personal hearing — Section 75 mandates a hearing before any adverse order. Adjournment is allowed up to 3 times on reasonable cause.
- DRC-07 — summary of the adjudication order quantifying tax, interest, and penalty.
- Appeal / Rectification — see GST Appeals or Rectification & Review.
Our GST Adjudication Services
Defence Strategy
End-to-end review of SCN, reconciliations, and contracts to design a structured legal defence.
Written Submissions
Comprehensive DRC-06 replies grounded in statute, rules, circulars, and authoritative case law.
Personal Hearing
Senior CA representation at hearings, including drafting of additional submissions on the record.
Cross-Examination
Request and conduct of cross-examination of witnesses, where relied upon by the department.
Voluntary Payment Strategy
Tactical use of DRC-03 to reduce penalty under Section 73(8), 74(8), or 74A(8) as applicable.
Continuity to Appeal
Seamless escalation to appeal with the same defence file and team. See GST Appeal Services.
Principles of Natural Justice in GST Adjudication
- Right to written reply — adequate time and clear allegations are mandatory.
- Right to personal hearing — Section 75(4) requires hearing before any adverse order.
- Reasoned order — order must address each contention raised by the taxpayer (Section 75(6)).
- Reliance on un-shared material is impermissible — all evidence relied upon must be put to the taxpayer.
- Cross-examination — where the order relies on third-party statements, cross-examination must be allowed where requested.
- Time-bound orders — Section 73 (3 years), Section 74 (5 years), Section 74A (42 months) place outer limits on adjudication.
Documents Required for Adjudication Defence
- SCN (DRC-01), DRC-01A pre-intimation, and all annexures.
- Filed GST returns — GSTR-1, GSTR-3B, GSTR-9 / 9C — for the periods in dispute.
- Books of account, audited financials, and trial balance.
- Tax invoices, e-way bills, shipping bills, FIRCs, and contracts.
- Prior correspondence, audit reports, ASMT-10 / ASMT-11, and scrutiny records.
- Power of attorney / authorisation in favour of the consultant.
Why Choose The Classic Partners
- Litigation-grade drafting grounded in statute, rules, circulars, and current case law.
- Documented hearings with written submissions placed on record for future appeals.
- Strategic voluntary payment where it materially reduces penalty exposure.
- End-to-end coverage — from scrutiny and SCN to adjudication and appeals.
Frequently Asked Questions
Is personal hearing always granted before an adjudication order?
Yes. Section 75(4) of the CGST Act mandates that an opportunity of personal hearing must be granted whenever a request is received in writing, or whenever any adverse decision is contemplated. Denial of hearing is a strong ground of challenge in higher forums.
How many adjournments can be sought during adjudication?
Section 75(5) allows up to 3 adjournments on showing sufficient cause, each duly recorded in writing. Excessive adjournment requests should be avoided as they may prejudice the case.
Can additional grounds be raised during adjudication?
Yes. The taxpayer can raise additional grounds, file supplementary submissions, and produce further evidence during the adjudication, particularly before or at the personal hearing. Each ground raised should be supported by reconciliations and case-law.
How long does the proper officer have to pass the order?
Under Section 73(10), an order must be passed within 3 years from the due date of the annual return. Under Section 74(10), within 5 years. The new Section 74A (for periods from FY 2024-25) prescribes a 42-month limitation. These limitations are subject to stay or extension by competent authority.
What is the role of cross-examination in GST adjudication?
Where the SCN relies on statements of third parties (e.g. suppliers, customers, or witnesses), the taxpayer can demand cross-examination of those persons. Denial of cross-examination, where the third-party statement is the cornerstone of the demand, has been held to vitiate the adjudication order by various High Courts.
What if the adjudication order is silent on key contentions?
Section 75(6) requires the order to set out the relevant facts and the basis of the decision. An order that ignores material contentions raised by the taxpayer is a non-speaking order and is generally set aside at the appellate stage. See GST Appeals for next steps.
Win at Adjudication, Not Just at Appeal
Get senior CA-led adjudication support and build the strongest possible defence file.
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