2024 (12) TMI 141 - HC - GST

Stay of further proceedings - failure to issue notice under Rule 99 in Form AMST-10 before issuing Show Cause Notice under Form DRC-01 - HELD THAT - Section 65 of the Goods and Services Tax Act provides audit of the tax authority but for that, as provided under Section 65 (3), the registered person has to be informed by way of notice not less than 15 working days prior to conduct of audit in such manner as may be prescribed. Learned Additional Advocate General has failed to point out any notice issued under Section 65 (3) of the Act or any corresponding rule related thereto, therefore, at this stage, prima facie case is made out like the case in CWP No. 1793 of 2024. Therefore, there shall be stay of further proceedings in pursuance to (Annexure P-1) dated 24.5.2024 and impugned order dated 12.9.2024 (Annexure P-3) for the financial year 2019-20 issued under Section 74 of the Act.

Summary

The High Court of Himachal Pradesh stayed further proceedings in a case related to the audit of a party under Section 65 of the Goods and Services Tax Act. The court found that the notice issued did not comply with the requirements of Section 65(3) of the Act. The stay was granted based on the absence of a valid notice for audit.