Case Law Details
Tvl. Raja Stores Vs Assistant Commissioner (ST) (High Court Madras)
Introduction: The case of Tvl. Raja Stores Vs Assistant Commissioner (ST) before the High Court of Madras brings up the critical question of whether an audit under the Goods and Services Tax Act (GST) can be conducted after a business has been permitted to close. The judgment sheds light on the legality and jurisdictional issues concerning GST audits for closed businesses.
Detailed Analysis
Background of the Case: The petitioner, a partnership firm called Raja Stores, had received permission to close its business. However, an impugned show-cause notice was issued for conducting a GST audit, prompting the filing of a Writ Petition to quash the notice.
The Petitioner’s Stance: Raja Stores argued that under Section 65 of the CGST Act, audits are meant for registered businesses. Since their business was closed and registration cancelled, the authorities have no jurisdiction to conduct an audit.
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Is Madras court Judgement applicable to Karnataka GST Department?