Dept. Can’t Conduct GST Audit After Approving Cancellation of GST Registration | Madras HC
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- Last Updated on 28 August, 2023
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Case Details: Tvl. Raja Stores v. Assistant Commissioner (ST) - [2023] 153 taxmann.com 657 (Madras)
Judiciary and Counsel Details
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- Mrs S. Srimathy, J.
- M.V. Mani Babu for the Petitioner.
- A.K. Manikkam for the Respondent.
Facts of the Case
The petitioner was a partnership firm registered under GST and intended to close business. It submitted an application before the authorities which was accepted and registration was cancelled with effect from 31.03.2023. Thereafter, it received notice for conducting audit. It filed writ petition and contended that the petitioner’s registration was cancelled and GST Department can’t conduct audit of unregistered concern.
High Court Held
The Honorable high Court noted that as Section 65 of CGST Act, 2017 specifically states ‘any registered person’, then it ought to be construed as existing concern and unregistered person is exempted from purview of section 65.
Further, the Court noted that when Section 65 provides for periodical audit, the department having failed to conduct audit for all these years, suddenly could not wake up and conduct an audit. However, the department can initiate assessment proceedings for petitioner under Sections 73 and 74. Therefore, the Court allowed the petition and notice for audit was quashed.
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