Department of Taxes conducts a three-day training on SCN adjudication and enforcement in Dimapur.
DIMAPUR — The Department of Taxes conducted a three-day specialised training programme on Show Cause Notice (SCN) adjudication under sections 73 and 74 of the Central Goods and Services Tax Act, 2017, and enforcement operations for tax officers across the state.
The training was held from September 15 to the 17th at the Training Centre, Commissioner of Taxes, Taxes Colony, Lengrijan, Dimapur, with participation from adjudicating officers, enforcement wing officials, assistant commissioners of State Taxes, and senior departmental officers.
According to an update, the programme was structured into two integrated modules to address demand adjudication and field enforcement aspects of Goods and Services Tax (GST) administration.
Module I focused on SCN adjudication under Sections 73 and 74, strengthening the technical capacity of tax officers in handling demand and recovery proceedings.
Topics covered included the distinction between Section 73 non-fraud cases and Section 74 cases involving fraud, wilful misstatement, or suppression of facts; proper invocation of statutory provisions in SCNs to withstand judicial scrutiny; and limitation periods of three years for Section 73 cases and five years for Section 74 cases from the due date of the annual return.
Officers were also instructed on the essential elements of a valid SCN, including clear allegations, factual basis, computation of tax, interest, penalty, and response timelines; recent judicial precedents, including Supreme Court rulings holding that fraud allegations must be explicitly stated in the SCN itself; and principles of natural justice under Section 75 of the NGST Act, ensuring taxpayers receive fair hearing opportunities.
Module II equipped enforcement wing officers with practical skills for field operations, including inspection drives against fake invoices, bogus registrations, and non-compliant dealers; search and seizure procedures under GST law, covering documentation, inventory management, and chain of custody; and intelligence-based operations utilising data analytics, Goods and Services Tax Network (GSTR)-1 versus GSTR-3B mismatches, and e-way bill tracking.
The module also covered coordination mechanisms with commercial tax intelligence units, police, and transport departments, alongside legal safeguards and post-enforcement workflows.
The sessions were delivered by senior officers from the commissionerate, empaneled GST practitioners, and enforcement specialists. Participants analysed real-world notice drafts, enforcement reports, and seizure memos, discussing jurisdictional issues, clubbing of notices, materiality thresholds, and transitional provisions.
Reference handouts, including comparison tables, compliance checklists, computation templates, standard operating procedures, and recent circulars, were distributed.
Speaking on the occasion, the commissioner of Taxes highlighted that accurate and legally sound notice issuance, coupled with professionally executed enforcement operations, is critical to maintaining the integrity of the GST administration system.
He noted that improper invocation of fraud provisions, mechanically drafted notices, or procedurally flawed actions have led to successful challenges by taxpayers in higher courts, resulting in revenue loss and reputational risk.
The commissioner stated that enforcement measures, including inspection drives against fake invoices and registrations, inventory checks, and tracking of goods movement through railway parcel offices and e-way bills, have been intensified across the state.
The programme marked the fourth onsite training conducted for state tax officers.