SUNIL GABHAWALLA | RISHABH SINGHVI | PARTH SHAH Chartered Accountants
laws are structured on three key pillars – levy, assessment and collection.
Assessment is the link between levy and collection of taxes. Assessment
provisions under indirect tax laws, especially excise law, have evolved from
the era of officer control and assessment to self-assessment.
its introduction in 2017, GST law is now about to change gears and enter the
phase of ‘Assessments’. This phase operates as a litmus test over the extent of
percolation of the law into the system both at the Government’s and the tax
payer’s end. Tax payers are about to experience challenges on the front of
assessments, audits and adjudications and this article examines some of the
ASSESSMENT – AUDIT – ADJUDICATION
the above terms are used inter-changeably, they represent distinct activities
in any legal enforcement. The GST law has made specific provisions towards each
of these aspects under its machinery provisions, i.e., Chapter XII –
Assessment; Chapter XIII – Audit; and Chapter XV – Demands & Recovery.
has been defined u/s. 2(11) as any ‘determination of tax liability’. Advanced
Law lexicon explains assessment as ‘determination of rate or amount of
something such as tax, damages, imposition of something such as tax or fine
according to an established rate’.
u/s. 2(13) involves an elaborate exercise of examination of records, returns
and other documents maintained to verify correctness of taxes paid / refunded
and assess compliance under the Act.
has not been defined but the term ‘Adjudication authority’ has been defined as
an authority that ‘passes any order or decision under the Act’.