Hubergroup India Private Limited Vs Union of India & Ors. (Gujarat High Court)
In the case of Hubergroup India Private Limited Vs. Union of India & Ors., the Gujarat High Court considered a petition challenging the validity of show-cause notices issued under the Central Goods and Services Tax Act, 2017 (GST Act). The core of the petitioner’s argument rested on a procedural lapse by the tax authorities: the audit that led to the notices was not completed within the statutory time frame.
Factual Background
The petitioner, Hubergroup India Private Limited, was subjected to a GST audit initiated by the respondent authorities. The audit notice, issued under Section 65(1) of the GST Act read with Rule 101 of the Central Goods and Service Tax Rules, 2017, was dated June 27, 2022. This audit was intended to cover the financial years 2017-18 to 2019-20.
The petitioner’s counsel, Mr. S.S. Iyer, argued that according to Section 65(4) of the GST Act, an audit must be completed within a period of three months from the date of commencement. This period can be extended by a further six months, bringing the maximum time frame to nine months. Mr. Iyer pointed out that in the present case, the audit concluded on August 2, 2024, which was well beyond the stipulated nine-month period.
