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BECHU KURIAN THOMAS
Rajive And Company, Chungath Arcade, OPP. Vandana Auditorium, Karunagapally, Kollam, Represented By Its Managing Partner, Mr. Rajive Paul – Appellant
Versus
Deputy Commissioner (Audit) Audit Division Kollam-2, Tax Complex, Asramam, Kollam – Respondent
JUDGMENT :
The challenge raised in this writ petition is against the show cause notices issued under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017/ Kerala State Goods and Services Tax Act, 2017 (for short, 'GST Act') apart from a final audit report dated 08.07.2024.
2. Petitioner is conducting a jewellery by the name 'Chungath Jwellery' and is an assessee under the GST Act. For the period between 2017-18 to 2021-22, petitioner's establishment was subjected to an audit under Section 65 of the GST Act. The statute prescribes that the audit should be completed within three months from the date of its commencement. The contention raised by the petitioner revolves around the non-compliance with the period stipulated for completing the audit. According to the petitioner, the show cause notices now issued and the final audit report filed based on an audit that was not completed within the time prescribed, has no legal basis and is therefore liable to be quashed.
3. A statement has been filed on behalf of the respondents stating that the audit was completed within three months from the date of its commencement as stipulated in the Explanation to Section 65(4) of the GST A
The commencement of audit under the GST Act is defined by the date documents are made available, and the audit must be completed within three months from that date.
The audit report's delay does not invalidate show cause notices under the CGST Act if they comply with statutory provisions, as the audit serves merely as additional material for initiating action.
The initiation of proceedings under one GST Act precludes subsequent actions under another for the same subject matter, emphasizing distinct meanings of 'proceedings' and 'inquiry'.
The audit provisions under Section 65 of the SGST Act apply to individuals who were registered during the audit period, even if their registration is cancelled thereafter.
Jurisdiction to issue a show cause notice under Section 74A arises from detected violations in monthly returns, allowing for action prior to annual return due date.
The authority must comply with court orders, and failure to do so may lead to contempt proceedings.
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