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TMI Blog2025 (3) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... t of audit. A summons issued under section 70 means the process of collection of evidence or gathering of material, as by interpretation of word 'investigation' given by the Supreme Court in Liberty Oil Mills v. Union of India [1984 (5) TMI 236 - SUPREME COURT] with reference to investigation mentioned in provisions of Import and Export Control Act and Imports (Control) Order, 1955. There is also no dispute that subject matter of both proceeding are same.
Impugned order is quashed - petition allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... notice and got conducted audit. Report was filed. Section 65 in Odisha Goods and Services Tax Act, 2017 provides for audit. Subsection (7) therein permits the proper officer to initiate action, inter alia, under section 74. Provisions in the Act correspond to provisions in Central Goods and Services Tax Act, 2017. On the audit concluded, petitioner accepted relevant paragraphs in the report, to meet the short payment of tax. 5. Mr. Padhy submits, the summons was issued prior to notice issued by State revenue. However, the show cause notice was issued after the audit report filed and his client having accepted it to pay the difference pointed out. In the circumstances, there stood a proceeding concluded before the show cause notice was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding on the same subjectmatter by the proper officer under the State Act has been initiated, whereas Section 70 of the U.P.GS.T./C.GS.T. Act merely empowers the proper officer to summon any person in any inquiry. The word "proceedings" used in Section 6(2)(b) is qualified by the words "subject-matter" which indicates an adjudication process/proceedings on the same cause of action and for the same dispute which may be proceedings relating to assessment, audit, demands and recovery, and offences and penalties etc. These proceedings are subsequent to inquiry under Section 70 of the Act. The words "in any inquiry" used in Section 70 of the Act is referable to the provisions of Chapter XIV, i.e. Section 67 (power of inspection, search and sei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter." ( emphasis supplied ) Clause (b) under sub-section (2) in section 6 of Odisha Goods and Services Tax Act, 2017 carries converse description of the proper officer as under the Central Act. Rest of the provision is same. 7. In view of aforesaid we are satisfied that State revenue had probed by initiating audit. In G.K. Trading Company (supra) view taken includes audit to be a proceeding. Undisputed fact is, the show cause notice issued by Central revenue was after commencement of audit. We are clear in our mind that a summons issued under section 70 means the process of collection of evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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