Abbott Healthcare Private Limited Vs Excise And Taxation Commissioner (Punjab and Haryana High Court)
The Punjab and Haryana High Court examined a challenge to a show cause notice dated 31.01.2024 issued under Section 73(1) of the Punjab Goods and Services Tax Act, 2017, the Central Goods and Services Tax Act, 2017, and relevant provisions of the Integrated Goods and Services Tax Act, 2017. The notice alleged excess availment of input tax credit (ITC), mismatches in returns, short payment of tax under the reverse charge mechanism, and undischarged tax liability, based on a purported special audit.
Upon review, the Court found that the notice was fundamentally flawed. The primary basis of the notice was stated to be a special audit conducted by the Comptroller and Auditor General of India (CAG). However, it was admitted by the State that no such audit of the petitioner had been conducted by the CAG, and that the audit relied upon was instead conducted by the CAG wing of the State GST Department. The Court held that this constituted a factual error going to the root of the matter, rendering the very foundation of the notice incorrect.
Additionally, the Court noted that the audit report forming the basis of the notice had not been supplied to the petitioner. This omission deprived the petitioner of the opportunity to effectively respond to the allegations.
