TaxTMI 
TaxTMI 
2024 (2) TMI 130
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....les and parts thereof as also the servicing of such vehicles. The petitioner further asserts that it is a registered person under GST laws in respect of multiple places of business. The books of account of the petitioner for the financial years 2017-2018 to 2020-2021 were audited by an audit group by issuing notice in Form GST ADT-01. Pursuant to such audit, a draft audit report containing audit observations was issued. This was followed by a revised draft audit report and eventually the issuance of an audit report in Form GST ADT-02 on 07.09.2023. Thereafter, a show cause notice dated 13.09.2023 was issued under Section 73 of the Central Goods and Services Tax Act, 2017 (the CGST Act) in respect of about 11 audit observations and a separat....
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.... cause notice was issued by disregarding this aspect. Learned counsel further contends that the petitioner would have been in a position to provide relevant documents if the respondent had uploaded the communication issued on 04.07.2023 on the GST portal instead of sending the same by way of e-mail. 4. Mr.A.P.Srinivas, learned senior standing counsel, accepts notice on behalf of the respondent. He submits that Section 65 of the CGST Act does not prescribe that the audit report should contain findings that it is an appropriate case for action under Section 74 of the CGST Act. Therefore, he submits that the show cause notice was issued by the proper officer in accordance with law. He further submits that the petitioner is in a position to re....
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.... content of the audit report appears to be satisfied. Learned counsel for the petitioner contended that the audit report should also contain findings of fraud or wilful-misstatement or suppression of facts. There is nothing in the language of Section 65 to indicate that the audit report should contain such findings. On the contrary, subject to the audit report disclosing the aforesaid, subsection (7) of Section 65 prescribes that the proper officer may initiate action under Section 73 or 74. Thus, the relevant provision indicates that the proper officer has the option. It is needless to say that the proper officer has to allege fraud, wilful-misstatement or suppression of fact, if he initiates action under Section 74. It is not the petition....