2023 (11) TMI 1270 - HC - GST

Deregistered Entity Challenges Audit Notice: Procedural Validity and GST Act Compliance Under Scrutiny

The HC examined the validity of a show cause notice challenging audit proceedings against a deregistered entity. Key issues included procedural ... Cancellation of petitioner's registration - issuance of SCN - audit was not completed within statutory period - HELD THAT:- At present, it is found, prima facie, is that though the notice Ex.P9 is dated 04.09.2023 and the period mentioned there under for the petitioner to file the reply was 15 days on receipt of notice, but the petitioner's case is that the notice was received on 14.09.2023, which, prima facie is also so evident from Ex.P12, said to be a document of the respondent authorities, and consequently, let the instructions be obtained by the learned Government Pleader with respect to the date of issue and receipt of the notice dated 04.09.2023 by the petitioner. The matter is listed on 20.11.2023 in the “Motion List”, for instructions as aforesaid. Petitioner challenges impugned show cause notice dated 29.09.2023 (Ex.P1), arguing that a notice dated 04.09.2023 (Ex.P9) was served only on 14.09.2023 - 'the notice issued date is 14.09.2023' (Ex.P12) - and therefore the statutory 15-day period under Section 65(3) of the Andhra Pradesh Goods and Services Tax Act, 2017 was not afforded before passing the order. Petitioner contends audit was improperly initiated after cancellation of registration on 01.05.2022 and relies on precedent that audit cannot be undertaken once a person ceases to be registered. It is further argued audit was not completed within three months from initiation and no extension by the Competent Authority was obtained, rendering any consequent show cause notice invalid. Respondent maintains objections can be raised before the Authority, that audit relates to the 'period of registration' under Sections 25 and 29, and that Section 65 does not show non-compliance with statutory time limits. Court directs verification of issue/receipt date of Ex.P9 and lists matter for instructions.