Maya Pradeep Kumar Vs Audit Officer (Kerala High Court)
In the case of Maya Pradeep Kumar vs. Audit Officer, the petitioner approached the Kerala High Court challenging a show cause notice (Ext.P4) issued under Section 74 of the CGST/SGST Acts. The petitioner argued that although they responded to all audit queries during the audit process, the final audit report (Ext.P3) ignored these submissions, leading to the issuance of the show cause notice.
The petitioner contended that there was no valid basis to initiate proceedings under Section 74. However, the Government Pleader argued that the matter was still at the show cause stage, and the petitioner could raise all objections—including claims about the audit report’s accuracy—before the Adjudicating Authority. It was emphasized that the Adjudicating Authority is competent to decide whether the proceedings under Section 74 are justified.
The High Court agreed with the Government Pleader, stating that the petitioner’s concerns regarding the audit findings and the applicability of Section 74 can be addressed during the adjudication process. The Court observed that it had no reason to assume that the Adjudicating Authority would disregard the petitioner’s objections.
Accordingly, the writ petition was disposed of with directions for the petitioner to raise all contentions before the Adjudicating Authority, who must consider them before issuing a final decision. The petitioner must be granted a personal hearing, and the deadline to respond to the show cause notice was extended by two weeks from the date of the judgment. The Adjudicating Authority was instructed to conclude the matter within three months from receipt of the certified judgment copy. The Court clarified that it made no findings on the merits of the petitioner’s claims.
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