Case Law Details
M/s. Gitanjali Vacationville Private Limited & anr. Vs The Union of India & anr. (Calcutta High Court)
Audit under Service Tax can continue post GST
Section 174 is the repeal and saving provisions. Sub-Section 1 of Section 174 repeals the provisions of the various statutes as mentioned therein. Sub-Section (2) of Section 174 stipulates that, notwithstanding the repeal of the Acts mentioned in Sub-Section (1) of Section 174 and the amendment of the Finance Act, 1994 to the extent mentioned in Sub-Section (1) of Section 174 or Section 173, it shall not affect any pending investigation, enquiry, verification or other legal proceedings and that, such proceedings may be instituted, continued or enforced as if such Act had not been repealed.
The High Court held that Provisions of Chapter V of the Finance Act, 1994 stands omitted by Section 173 of the Act of 2017 save as otherwise provided under the Act of 2017. Therefore, if any provision of the Act of 2017 allows the applicability of the Chapter V of the Finance Act, 1994, then notwithstanding the omission of the Chapter V of the Finance Act, 1994 under Section 173, the same continues to apply . On a prima facie reading of Sections 173 and 174 of the Act of 2017, it appears that an enquiry or an investigation or even a legal proceeding under the Act of 1994 is permissible notwithstanding the coming into effect of the Act of 2017- The authorities are proposing undertake an audit for the period when the Act of 1994 was applicable, the authorities are entitled to do so. Thus, the High Court declined to grant interim stay.
FULL TEXT OF THE INTERIM HIGH COURT ORDER / JUDGMENT
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