P S K Engineering Construction & Co. Vs Assistant Commissioner of GST & Central Excise (Madras High Court)
The Madras High Court recently addressed the issue of audit powers under Section 65 of the CGST Act in the case of P S K Engineering Construction & Co. vs Assistant Commissioner of GST. The petitioner challenged a notice issued by the Central GST authorities while State GST proceedings on similar grounds were ongoing.
The petitioner argued that the initiation of Central GST audit proceedings, despite ongoing State GST assessments for multiple years, violated Section 6(2)(b) of the CGST Act. This section prohibits dual proceedings by different GST authorities on the same subject matter.
The court examined the scope of Section 6(2)(b) and clarified that it restricts simultaneous proceedings only on identical subject matters. The audit notice, reviewed by the court, clearly stated its intention to proceed under Section 65 of the CGST Act, asserting that the subject matter was different from that under review by State authorities.
In its judgment, the Madras High Court disposed of the petition, allowing the audit to proceed under Section 65 of the CGST Act. The court emphasized that unless the subject matter of the audit overlaps with ongoing State GST proceedings, Central GST authorities are within their rights to conduct audits independently. This decision reinforces the statutory framework’s provisions on audit powers under CGST, ensuring clarity on jurisdictional issues between Central and State GST authorities.
