Rule 5A does not allow statutory audit; only document scrutiny at registered premises

The court clarified that Rule 5A of the Service Tax Rules, 1994 does not authorize a statutory audit but only grants access to registered premises for document scrutiny. The petitioner's apprehension of a statutory audit was rejected, emphasizing the audit team's role is limited to accessing premises for document inspection as per departmental instructions.

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Issues:
1. Apprehension of statutory audit under Rule 5A of the Service Tax Rules, 1994.

Analysis:
The petitioner filed a petition apprehending a statutory audit being conducted at their registered premises under Rule 5A of the Service Tax Rules, 1994. The notice indicated the Internal Audit Group No. LG-I would conduct an audit for the year 2010-2011 and requested certain documents to be furnished. The notice also emphasized the need for full cooperation and availability of records during the audit. However, the court noted that Rule 5A does not permit conducting an audit but only provides access to registered premises and documents for scrutiny by the audit party. The court rejected the petitioner's apprehension that an audit would be conducted at their premises, clarifying that the audit team's role is limited to accessing the premises for document scrutiny as per departmental instructions.

This judgment clarifies the distinction between a statutory audit and providing access under Rule 5A of the Service Tax Rules. It emphasizes that Rule 5A does not authorize conducting an audit but only grants access to registered premises for document scrutiny. The court rejected the petitioner's apprehension of a statutory audit, affirming that the audit team's function is limited to accessing premises for document inspection in compliance with departmental instructions.

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