MAG Filters And Equipments Private Limited Vs Commissioner of CGST Audit Gurugram And Other (Punjab and Haryana High court)
Punjab and Haryana High Court held that action of the department already taken under section 73 of the Central Goods and Services Tax Act, 2017 doesn’t restrain GST authorities from conducting audit. Accordingly, writ dismissed.
Facts- Petitioner, by way of present writ petition, assails the proceedings initiated by the respondents u/s. 65 of the CGST Act, 2017 for conducting audit. Notably, the impugned notice demands several documents which were already made available while conducting anti-evasion action and notices were issued to the petitioner u/s. 73 of the Act, whereafter tax demand from the period 2017-18 up to 2021-22, amounting to Rs.70,35,44,181/- and interest amounting to Rs.43,29,194/- was raised and deposited by the petitioner. After completion of said proceedings, a fresh proceedings u/s. 65 of the Act ought not have been initiated, and the same is a cause of great harassment to the petitioners, who are ready to get audit done for the year 2022-23.
Conclusion- Held that the submission of the petitioner that the respondents have already taken action under Section 73 of the Act, would not be a ground to restrain the authorities from conducting audit, as the audit may result in detection of tax not paid or short paid or erroneously refunded or it may be even otherwise, to the benefit of the concerned registered person. In the event that it is found that the tax has been evaded fraudulently, the power is available to the Department to initiate proceedings under Section 74 of the Act, independent of the proceedings which may have been undertaken under Section 73 of the Act.
