2025 (3) TMI 101 - HC - GST

Adjudicating Authority to Address Petitioner's Objections Under Section 74 CGST/SGST Acts; Response Deadline Extended

Maya Pradeep Kumar Versus Audit Officer and Deputy Commissioner (Audit), Kottayam

The court determined that the petitioner's objections to the audit report and the initiation of proceedings under Section 74 of the CGST/SGST Acts should ... Challenge to show notice issued under the provisions of Section 74 of the CGST/SGST Acts - no cause of action to issue a show cause notice under Section 74 of the CGST/SGST Acts - HELD THAT:- There is considerable merit in the contention taken by the learned Government Pleader that all contentions taken by the petitioner before this Court, in challenge to Ext.P4 show cause notice, are matters that can be taken up before the Adjudicating Authority. The contention of the petitioner that the Audit Report was finalized without considering the contentions taken by the petitioner is also a matter that can be raised before the Adjudicating Authority and I have no reason to believe that if such contention is taken, the Adjudicating Authority will not consider such objections and will proceed to finalize the demand solely on the basis of the findings in the Audit Report. Further, the question as to whether the petitioner is liable to be proceeded against under Section 74 of the CGST/SGST Acts is also a matter that can be considered by the Adjudicating Authority. Petition disposed off. The petitioner challenged a show cause notice issued under Section 74 of the CGST/SGST Acts. The petitioner argued that the audit report (Ext.P3) was prepared without considering their responses to audit queries, leading to the issuance of the show cause notice (Ext.P4). The petitioner contended that there was no cause of action for the notice under Section 74. The Government Pleader argued that all petitioner's contentions could be raised before the Adjudicating Authority and that the correctness of Ext.P3 findings could be challenged during adjudication of Ext.P4. The Court found merit in the Government Pleader's argument, stating that all issues raised by the petitioner could be addressed by the Adjudicating Authority. The Court directed the Adjudicating Authority to consider the petitioner's objections to the audit report and the initiation of proceedings under Section 74 before making a final decision. The petitioner was granted an opportunity to be heard, and the time for replying to the show cause notice was extended. The Adjudicating Authority was instructed to issue a decision within three months, emphasizing that the Court had not expressed any opinion on the merits of the petitioner's contentions.