REPLY TO SHOW CAUSE NOTICE IN GST TO BE CONSIDERED EVEN IF SENT BY POST & NOT THROUGH PORTAL: MADRAS HIGH COURT
October 17, 2022ASMT 10 is mandatory before proceedings, failure to issue the same in respect of would vitiate the entire proceedings: Madras High Court
October 21, 2022
GST Proceedings Initiated By GST Audit Division, Anti Evasion And Range Office For The Same PeriodIs Not Permissible: Calcutta High Court
The Hon’ble Calcutta High Court in M/s. R.P. Buildcon Private Limited &Anr v. The Superintendent, CGST & CX [WPA 20025 OF 2022 dated September 30, 2022] held that that the audit proceedings under Section 65 of the Central Goods and Services Act, 2017 (“the CGST Act”) has already commenced by Audit Commissionerate thus, it is appropriate that the proceedings should be taken to the logical end by Audit Commissionerate itself. It was further concluded that, the proceedings initiated by the Anti Evasion and Range Office for the very same period shall not be proceeded with any further.
The Superintendent, CGST & CX (“the Respondent) issued notices relating to financial year 2017-2018 to 2019 – 2020 for which an audit under Section 65 of the CGST Act dated 09.11.2021. In the meantime, the other two wings of the department, viz. Anti Evasion wing as well as the Range Office have also proceeded against the appellants by issuing notices for the very same period for which audit proceedings under Section 65 of the Act has already commenced.
M/s. R.P. Buildcon Private Limited &Anr (“the Appellant”) filed a writ petition to quash the show cause notice (“SCN”) issued by the Respondent contending that once an audit under Section 65 of the CGST Act, has been conducted, the scrutiny of returns under Section 61 of the CGST Act, 2017 cannot be done for the same tax period.
The respondent submitted that the three wings of the department are proceeding against the appellants because the Range office was not aware about the proceedings initiated by the Audit Commissionerate and the Anti Evasion also was not aware of the same. It is not clear as to why in the present days of electronic communications available in the department, such parallel proceedings can be conducted by three wings of the same department for the very same period.
Therefore,Hon’ble High Court held that we are of the view that since the audit proceedings under Section 65 of the Act has already commenced, it is but appropriate that the proceedings should be taken to the logical end. The proceedings initiated by the Anti Evasion and Range Office for the very same period shall not be proceeded with any further.
The High Court directed the Respondents to issue SCN to the Appellants within a period of six weeks from the date of receipt of the server copy of this judgment and order and afford a reasonable opportunity to the Appellants to submit their reply along with documents.
The court restrained the other officials from proceeding further against the appellants in respect of the same period for which action has been initiated.
