Chhattisgarh High Court rules intelligence officers can issue notices while competent officers handle adjudication

The Chhattisgarh High Court determined that Director General of Goods and Services Tax Intelligence (DGGI) officers may issue Goods and Services Tax (GST) show-cause notices, while adjudication must be undertaken by the competent Central Tax officer in accordance with the applicable government circular. The ruling addresses the jurisdictional demarcation between investigative wings and adjudicating authorities within the indirect tax architecture.

Investigative agencies specialize in unearthing tax evasion, whereas regular tax administrators handle formal adjudication and determination of liability. This separation prevents concentration of investigative and adjudicative powers in a single authority, maintaining administrative checks and balances. Previously, overlapping jurisdictions led to frequent litigation regarding which office held the legal competence to issue notices and pass final orders.

Practitioners should scrutinize every show-cause notice issued by intelligence arms to ensure that final adjudication proceedings are transferred to or conducted by the designated jurisdictional Central Tax officer. Legal teams must monitor upcoming judicial clarifications regarding circular compliance. Bottom line: Proper identification of the adjudicating authority protects taxpayers from procedural illegality in tax proceedings.