2023 (8) TMI 776 - HC - GST

Taxpayer's Premature Challenge to OGST Audit Report Rejected, Advised to Raise Objections During Assessment Proceeding

Shalimar Chemical Works (P) Ltd. Versus Commissioner of Commercial Taxes and Goods and Service Tax, Cuttack and another

HC of Orissa dismissed a writ petition challenging an OGST audit report and notice as premature. The court advised the petitioner to raise objections ... Validity of objection raised in GST audit report - direction to discharge its statutory liabilities as per the provisions of the Act and the Rules made thereunder, failing which proceeding as deemed fit may be initiated against it under the provisions of the Act - petitioner contended that against certain objections in the audit report, the petitioner is not liable to be charged with liability - HELD THAT:- The petitioner has challenged the audit report under Annexure-4 contending that certain observations have been made in the audit report to which the petitioner is not liable to pay the amount. On the basis of such audit report, the notice under Section 65 (6) of the Act (Annexure-5) has been issued, where the petitioner has been directed to discharge its statutory liabilities as per the provisions of the Act and the Rules made thereunder, failing which proceedings as deemed fit may be initiated against it under the provisions of the Act. The petitioner has not come against any order passed by the authority concerned. In any case, if the petitioner shall have any grievance with regard to the audit report and the subsequent order in connection with notice under Annexure-5, then he may raise the objection before the assessing authority. The petitioner shall get a chance to have its say in the assessment proceeding. This writ petition at this stage is premature one, for which this Court is not inclined to entertain the same. Petition disposed off. Issues involved: Challenge to audit report and subsequent notice under Section 65(6) of the OGST Act, 2017.Summary:The High Court of Orissa heard a writ petition challenging an audit report dated 24.03.2023 and a subsequent notice issued under Section 65(6) of the OGST Act, 2017. The petitioner contended that they should not be charged with certain liabilities mentioned in the audit report. On the other hand, the Standing Counsel for CT & GST argued that the writ petition was premature as the petitioner would have the opportunity to address objections in the audit report at a later stage. The Court noted that the petitioner had not challenged any order passed by the authority concerned and advised that if the petitioner had grievances regarding the audit report and subsequent notice, they should raise objections before the assessing authority during the assessment proceeding. The Court deemed the writ petition premature and disposed of it accordingly.