Mag Filters And Equipments Private Limited vs. Commissioner Of CGST Audit Gurugram

CWP/33348/2024HC Punjab and HaryanaGSTCNR PHHC01171932202411 December 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH4 pages

AI SummaryDismissed

Held

The Court held that Section 65 of the CGST Act does not impose any embargo or time limit on conducting audits, and such proceedings are akin to a preliminary inquiry. The Court found no reason to interfere with the audit proceedings.

Facts

The petitioner challenged audit proceedings initiated under Section 65 of the CGST Act, arguing that similar proceedings under Section 73 had already concluded and that fresh audits would cause harassment. The petitioner also noted a previously dropped demand and a confirmed excess ITC amount.

Key Issues

Whether fresh audit proceedings under Section 65 are permissible after conclusion of proceedings under Section 73, and if such audits cause undue harassment.

Sections Cited

Section 65, Section 73, Section 74

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

1. Petitioner, by way of present writ petition, assails the proceedings initiated by the respondents under Section 65 of the CGST Act, 2017, (hereinafter referred to ‘the Act’), for conducting audit. 2. It is submitted by learned Senior counsel for the petitioner that the impugned notice demands several documents which were already made available while conducting anti-evasion action and notices were issued to the petitioner under Section 73 of the Act, whereafter tax demand from the period 2017-18 up to 2021-22, amounting to Rs.70,35,44,181/- and interest amounting to Rs.43,29,194/- was raised and deposited by the petitioner. LAVISHA 2024.12.13 10:30 I attest to the accuracy and

authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

Learned Senior counsel for the petitioner further submits that after the said proceedings had ended, a fresh proceedings under Section 65 of the Act ought not have been initiated, and the same is a cause of great harassment to the petitioners, who are ready to get audit done for the year 2022-23. 4. Learned Senior counsel for the petitioner has also pointed out that for FY 2018-19, a demand has been raised totalling to Rs.94,86

The judgment continues below.

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Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.