9911796707
TMI Blog2025 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ix months. However, the explanation to the aforesaid provision stipulates that the commencement of the audit shall mean the date on which the records and other documents called for by the Tax Authorities are made available or the actual institution of audit at the place of business whichever is later. Though a question can arise whether the time limit is mandatory or only directory in view of the use of the word 'shall', the said question is left open for consideration in appropriate case, considering the circumstances of this case. The hearing notice dated 26.03.2024 and 02.04.2024 have not been produced. However, it is evident from the Ext.P5 communication issued by the petitioner itself that additional evidences were called for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 73 and 74 of the Central Goods and Services Tax Act, 2017/Kerala State Goods and Services Tax Act, 2017 (for short, 'GST Act') apart from a final audit report dated 08.07.2024. 2. Petitioner is conducting a jewellery by the name 'Chungath Jwellery' and is an assessee under the GST Act. For the period between 2017-18 to 2021-22, petitioner's establishment was subjected to an audit under Section 65 of the GST Act. The statute prescribes that the audit should be completed within three months from the date of its commencement. The contention raised by the petitioner revolves around the non-compliance with the period stipulated for completing the audit. According to the petitioner, the show cause notices now issued and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pletion of the audit would certainly have been much before that. 5. Smt. M.M. Jasmine, the learned Government Pleader, on the other hand, submitted that the respondents received all the documents from the petitioner only on 06.05.2024 and hence the completion of the audit need to have been carried out only within three months from the said date. It was also submitted that from Ext.P5 itself, it is evident that petitioner had submitted additional documents only along with the said communication dated 09.04.2024 and therefore viewed in that perspective also, the respondents had time up till 08.07.2024 for completing the audit. 6. While considering the rival contentions, it is necessary to refer to Section 65 of the CGST Act which reads as b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh such information as he may require and render assistance for timely completion of the audit. (6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings. (7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section 73 or section 74 1[or section 74A]. 7. The audit contemplated under the above provision stipulates that it shall be completed within a period of three months from the date of commencement of the audit. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e(s), which is required to be furnished by the RTP, then we can have the same compiled and arranged as well'. The hearing notice dated 26.03.2024 and 02.04.2024 have not been produced. However, it is evident from the Ext.P5 communication issued by the petitioner itself that additional evidences were called for by the respondents from the petitioner. The said additional records are stated to have been produced on 09.04.2024, as seen from Ext.P5. Therefore, it can safely be concluded that the date on which the documents called for by the respondents were produced by the petitioner on 09.04.2024. 10. In this context, it is necessary to refer to the Explanation to Section 65 which stipulates that the expression 'commencement of audit s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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