2026 (1) TMI 631

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....visionary notice bearing No. ADCOM (SMR)-2/SMR-14/2025-26 dated 05.11.2025 issued by the Respondent, enclosed as Annexure A, for the reasons stated in the grounds. (ii) To issue order or direction or writ in the nature of mandamus holding that invocation of revisional powers by the Respondent to issue the impugned notice dated 05.11.2025 under Section 108(1) of the CGST/KGST Act against an audit report is incorrect and without authority of law. (iii) Grant such other consequential reliefs, as this Honourable High Court may think fit including refund of amounts already paid with interest and the cost of this writ petition." 2. Heard learned counsel for the petitioner and learned AGA for respondent and perused the materia....

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.... the nature of certiorari or any other writ holding that the interest Section 50 of the CGST/SGST Act, 2017 and penalty under Section 73(9) of CGST/SGST Act, 2017 is not leviable; (e) To issue order(s), directions, writ(s) or any other relief as this Hon'ble Court deems it fit and proper in the facts and circumstance of the case in the interest of justice;" 2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondent and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned Senior Counsel for the petitioner invited my attention to the Revised Audit Observation dated 17.11.2023, ....

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....hich reads as under: "Section 65(7) of the Kerala Goods and Services Tax (KGST) Act, 2017, states that if an audit conducted by the tax authorities detects any instances of unpaid or short-paid tax, erroneously refunded tax, or input tax credit wrongly availed or utilized, the proper officer can initiate action under Section 73 or Section 74 of the Act." 6. A plain reading of the aforesaid provision will clearly indicate that upon coming to know about issuance of the Audit Report, it is incumbent upon the respondent to initiate proceedings action under Section 73 or Section 74 of the KGST Act and without doing so, it is impermissible in law for the respondent to initiate revisional proceedings, which is contrary not only to the ....