2024 (1) TMI 1098 - HC - GST

Denial to grant any interim relief - audit authority has failed to take note of the submission made by the assessee - subject matter is pending adjudication by the CGST Authority - HELD THAT - The audit wing of the State GST Authority ought to keep the matter abeyance so far as the discrepancy note is concerned. The authority now has issued a show cause notice dated 29.12.2023 since the discrepancy note no. 3 pointed out by the Audit Wing of the State GST authority is the subject matter of adjudication of CGST Authority. Pursuant to the show cause notice dated 28.03.2023 the audit wing of the SGST Authority should not proceed. The appeal along with the connected application and the writ petition are disposed of by directing the audit wing of the SGST Authority to keep in abeyance all proceedings in respect of the discrepancy note no. 3 alone including the show cause notice dated 29.12.2023 and abide by the adjudication order to be passed by the CGST Authority , namely, the fourth respondent on the show cause notice dated 28.03.2023.

Summary

Issues involved: Appeal against denial of interim relief in WPA 26410 of 2023 due to discrepancies in audit memo and show cause notice by CGST Authority.

Summary:

The appeal was filed against the order declining interim relief, and both the appeal and writ petition were taken up together for disposal. The appellant received an audit memo highlighting discrepancies, particularly focusing on one discrepancy. The appellant informed the SGST Authority that a show cause notice had been issued by the anti-evasion wing of the CGST Department, covering the same issues, for the financial years 2017-2018 to 2021-2022, and the matter was pending adjudication. The appellant replied to the show cause notice on 4th May, 2023, and the matter was under adjudication by the CGST Authority. The audit wing of the State GST Authority failed to acknowledge the appellant's reply and issued a show cause notice on 29.12.2023 concerning the same discrepancy. The court directed the audit wing of the SGST Authority to suspend all proceedings related to the specific discrepancy noted in the audit memo, including the show cause notice dated 29.12.2023, and to abide by the adjudication order to be issued by the CGST Authority on the show cause notice dated 28.03.2023.