9911796707
TMI Blog2024 (2) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... - Section 65 of the CGST Act deals with audit by a tax authority and sub-section (7) thereof is particularly relevant for this case - The text of sub-section (7) indicates that the audit conducted under sub-section (1) thereof should result in the detection of tax not paid or short paid or erroneously refunded, or that Input Tax Credit (ITC) was wrongly availed or utilised. On examining the audit report, undoubtedly, it indicates that tax was not paid or short paid or that ITC was wrongly availed or utilised. Thus, the obligation imposed by statute with regard to the content of the audit report appears to be satisfied. Learned counsel for the petitioner contended that the audit report should also contain findings of fraud or wilful-misstate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany engaged in the business of supply of light vehicles and parts thereof as also the servicing of such vehicles. The petitioner further asserts that it is a registered person under GST laws in respect of multiple places of business. The books of account of the petitioner for the financial years 2017-2018 to 2020-2021 were audited by an audit group by issuing notice in Form GST ADT-01. Pursuant to such audit, a draft audit report containing audit observations was issued. This was followed by a revised draft audit report and eventually the issuance of an audit report in Form GST ADT-02 on 07.09.2023. Thereafter, a show cause notice dated 13.09.2023 was issued under Section 73 of the Central Goods and Services Tax Act, 2017 (the CGST Act) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the relevant unit, it is submitted that the show cause notice was issued by disregarding this aspect. Learned counsel further contends that the petitioner would have been in a position to provide relevant documents if the respondent had uploaded the communication issued on 04.07.2023 on the GST portal instead of sending the same by way of e-mail. 4. Mr.A.P.Srinivas, learned senior standing counsel, accepts notice on behalf of the respondent. He submits that Section 65 of the CGST Act does not prescribe that the audit report should contain findings that it is an appropriate case for action under Section 74 of the CGST Act. Therefore, he submits that the show cause notice was issued by the proper officer in accordance with law. He furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the obligation imposed by statute with regard to the content of the audit report appears to be satisfied. Learned counsel for the petitioner contended that the audit report should also contain findings of fraud or wilful-misstatement or suppression of facts. There is nothing in the language of Section 65 to indicate that the audit report should contain such findings. On the contrary, subject to the audit report disclosing the aforesaid, subsection (7) of Section 65 prescribes that the proper officer may initiate action under Section 73 or 74. Thus, the relevant provision indicates that the proper officer has the option. It is needless to say that the proper officer has to allege fraud, wilful-misstatement or suppression of fact, if he ini ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
