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Introducing the “In Favour Of” filter in Case Laws.
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of <h1>Audit Notice Challenge Upheld: Petitioner Granted Four Weeks to Respond with Full Procedural Safeguards</h1> HC reviewed a challenge to an audit notice. The court granted the petitioner four weeks to respond to the show cause notice, directing the respondent to ... Violation of principles of natural justice - Challenge to impugned SCN and the Audit Report - demand of tax alongwith interest - HELD THAT:- In the case on hand, the Audit Memo was issued on 09.11.2022, wherein the petitioner was directed to furnish their reply within a period of two working days. However, the petitioner was not in a position to file their reply within time. Subsequently, the respondent had finalized the draft Audit report on 14.11.2022. In such case, it is an admitted fact that the reply was not at all considered by the respondent while passing the draft Audit Report. It is clear that the reply was not filed by the petitioner before preparing the draft Audit Report. However, it is not that the petitioner had once for all lost his opportunity of filing their reply. The petitioner is granted liberty to file their reply to the impugned show cause notice dated 19.09.2023 within a period of 4 weeks from the date of receipt of a copy of this order - Upon receipt of the said reply, the respondent shall independently consider the reply filed by the petitioner, on its own merits and pass orders in accordance with law, after providing sufficient opportunities to the petitioner, as expeditiously as possible. Conclusion - While the petitioner's reply was not considered before the draft Audit Report, they still had the opportunity to address grievances by responding to the show cause notice.The court ordered that the petitioner is granted liberty to file a reply to the show cause notice within four weeks. Petition disposed off. Writ petitions challenged an impugned show cause notice dated 19.09.2023 and an impugned Audit Report (Form GST ADT-02) dated 31.01.2023. The Audit Memo (09.11.2022) required a reply within two working days; the draft Audit Report was finalized on 14.11.2022 and approved on 29.11.2022. The petitioner filed multiple replies thereafter, which were 'not at all considered' before issuance of the draft Audit Report, raising a claim of violation of the principles of natural justice. The court found the petitioner's pre-draft replies were not considered but held that the petitioner had not permanently lost the opportunity to be heard. The court therefore ordered: i) the petitioner is 'granted liberty to file their reply to the impugned show cause notice dated 19.09.2023 within a period of 4 weeks'; and ii) upon receipt, the respondent shall 'independently consider the reply filed by the petitioner, on its own merits and pass orders in accordance with law, after providing sufficient opportunities to the petitioner, as expeditiously as possible.' Writ petitions disposed of; no costs.
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