2023 (11) TMI 1270 - HC - GST

Cancellation of petitioner's registration - issuance of SCN - audit was not completed within statutory period - HELD THAT - At present, it is found, prima facie, is that though the notice Ex.P9 is dated 04.09.2023 and the period mentioned there under for the petitioner to file the reply was 15 days on receipt of notice, but the petitioner‟s case is that the notice was received on 14.09.2023, which, prima facie is also so evident from Ex.P12, said to be a document of the respondent authorities, and consequently, let the instructions be obtained by the learned Government Pleader with respect to the date of issue and receipt of the notice dated 04.09.2023 by the petitioner. The matter is listed on 20.11.2023 in the Motion List , for instructions as aforesaid.

Summary

Issues Involved:
The issues involved in the judgment are the validity of the show cause notice, the legality of audit proceedings, and the completion of audit within the statutory period.

Validity of Show Cause Notice:
The petitioner challenged the show cause notice dated 29.09.2023, arguing that the order was passed before the statutory 15-day period for filing a reply. The petitioner pointed out discrepancies in the notice dates and highlighted the need for proper time to respond as per Section 65(3) of the Andhra Pradesh Goods and Services Tax Act, 2017.

Legality of Audit Proceedings:
The audit proceedings were initiated based on a previous show cause notice dated 21.10.2022. The petitioner contended that after the registration was canceled on 01.05.2022, the audit should not have been conducted as per Section 65 of the Act. Citing a relevant case, the petitioner argued that an audit cannot be undertaken against a person who is no longer a registered entity.

Completion of Audit within Statutory Period:
The petitioner claimed that the audit, initiated post registration cancellation, should have been completed within 3 months as per regulations. However, the period had expired without any extension granted by the Competent Authority. The petitioner asserted that the impugned show cause notice based on this audit report was legally untenable.

Conclusion:
The court noted discrepancies in the notice dates and instructed the Government Pleader to verify the date of issue and receipt of the notice. The matter was adjourned to 20.11.2023 for further instructions and keeping all submissions and objections open for consideration.