GIL-TPL (JV) Vs State of Haryana And Others (Punjab And Haryana High Court)
Summary: Punjab and Haryana High Court disposed of the writ petition filed by M/s GIL-TPL (JV), which challenged the audit report in Form GST ADT-02 dated 04.12.2024 and the consequential show cause notices issued under Section 74 of the CGST Act, 2017. The petitioner’s principal grievance was that it had not been afforded a proper opportunity to submit comments on the discrepancies identified during audit. According to the petitioner, comments regarding the alleged discrepancies had in fact been submitted, but they were not examined and the audit report was finalized on the basis that no reply had been furnished.
During the proceedings, counsel for the revenue obtained written instructions under which the Deputy Excise and Taxation Commissioner, Ambala expressed willingness to revisit the matter after providing the petitioner an opportunity to clarify the aspects highlighted in the audit report. The petitioner, through senior counsel, agreed to cooperate and furnish the required details.
In view of the stand taken by both sides, the High Court permitted the petitioner to submit its explanation/comments concerning the discrepancies in the audit report, together with supporting documents, if any, within fifteen days from the date of the judgment. The authorities were directed to reconsider the matter after taking those submissions into account and to prepare a fresh audit report within six weeks thereafter.
Consequently, the show cause notices dated 09.12.2024 and 16.12.2024 were set aside. The Court clarified that any fresh show cause notice issued thereafter would have to abide by the fresh audit report prepared in accordance with its directions. The writ petition and all pending miscellaneous applications were accordingly disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. The petitioner is aggrieved by the audit report in Form GST ADT-02 dated 04.12.2024 (Annexure P/18), primarily on the ground that proper opportunity to submit comments on the alleged discrepancy, was not afforded to the petitioner.
2. Learned senior counsel submits that though the comments in respect of alleged discrepancies had been submitted by the petitioner but the same were not examined and the authorities proceeded to finalize the audit report treating that no reply had been submitted in the matter and consequently notices under Section 74 of the CGST Act, 2017, issued to the petitioner are also assailed.
3. The matter was heard at some length with the able assistance of the learned senior counsel appearing for the petitioner and the revenue. On the prayer of the counsel for the revenue, the matter was adjourned in order to enable him to obtain appropriate instructions.
4. Written instructions have been received by the counsel for the revenue, as per which, the Deputy Excise and Taxation Commissioner, Ambala, is willing to re-visit the issue, after affording an opportunity to the petitioner to clarify the aspects as highlighted in the audit report.
5. Learned senior counsel states that the petitioner would cooperate and furnish all such details in this regard.
6. In view of the fair stand taken by learned counsel for the parties, the present writ petition is disposed of with liberty to the petitioner to submit its explanation/comments with regard to the discrepancies highlighted in the audit report, along with supporting documents, if any, within a period of fifteen days from today. The concerned authorities shall re-visit the issue after taking into consideration the explanation/comments so submitted by the petitioner and shall prepare a fresh audit report within a period of six weeks thereafter. The impugned show cause notices dated 09.12.2024 and 16.12.2024 are consequently set aside and any fresh show cause notice(s), if issued, shall abide by the audit report to be prepared in terms of the observations made hereinabove.
7. All pending miscellaneous application(s), if any, shall also stand disposed of.
