TaxTMI 
TaxTMI 
2025 (10) TMI 1328
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....The present two petitions arise out of an audit which had been commenced against the Petitioner vide audit notice dated 11th January, 2024 for the Financial Year 2017-18 (from 1st July, 2017) to Financial Year 2022-23. Various notices were issued to the Petitioner and information was sought in the form of documents and clarifications which were duly supplied by the Petitioner vide letters dated 22nd February, 2024, 19th April, 2024, 6th September, 2024 and 24th September, 2024. 3. A draft audit report was also prepared by the Department and in respect thereof as well, certain clarifications were sought on 4th October, 2024. The reply was given by the Petitioner to the clarification sought in the draft audit report on 11th October, 2024. ....
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....CGST Act, the audit is to be completed within three months though the said period is extendable in terms of the proviso of the said provision for a further maximum period of six months. 10. It is further submitted that the findings have to be communicated within a period of 30 days after conclusion of the audit in terms of Section 65(6) of the CGST Act. 11. The second submission is that the SCN having been issued before the period for filing a reply to the pre-SCN having lapsed, the SCN is also not tenable. 12. Mr. Ramachandran, ld. Senior Standing Counsel appearing for the Department on the other hand argues that under Section 65 of the CGST Act, the audit has to be concluded within three months but a further period of 30 days exi....
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....s, whichever is later. (5) During the course of audit, the authorised officer may require the registered person, - (i) to afford him the necessary facility to verify the books of account or other documents as he may require; (ii) to furnish such information as he may require and render assistance for timely completion of the audit. (6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings. (7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly av....
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....n any case, the said period of three months is also not a mandatory period as the proviso permits further maximum period of six months. 17. In the overall circumstances when the audit report has been prepared on 11th February, 2025 and communicated to the Petitioner on 13th February, 2025, this Court is not inclined to hold that the same is beyond limitation. 18. Insofar as the pre-SCN is concerned, the same records specifically as under: "You are hereby advised to pay the amount of tax as ascertained above along with the amount of applicable interest and penalty under Section 74(5) by 28/11/2024, failing which Show Cause Notice will be issued under Section 74(1). In case you wish to file any submissions against the ....