The Punjab & Haryana High Court has issued the notice to the excise department asking it to explain how the Comptroller and Auditor General of India (CAG) has conducted the audit of the Firm.
The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has issued notice and granted stay against the show cause notice. It calls upon the department to explain as to how the CAG can conduct an audit of a private party/person.
The petitioner/assessee was a leading pharmaceutical manufacturer. It was issued a letter, styled as DRC-01 SCN, purportedly, on the ground that Comptroller and Auditor General of India has conducted audit and notice is being issued on the said basis. The Show Cause Notice did not have a Director Identification Number (DIN). The Show Cause Notice was unsigned.
The assessee argued that the Show Cause Notice was sent by email and not uploaded on the portal. There was no audit conducted under section 65 or any pre- Show Cause Notice issued under Form DRC-01A. The notice sought to demand tax along with interest and penalty of over Rs.100 crores. Form GST DRC-01A under Rule 142(1A) of the GST Rules indicates that it is a pre-show cause notice intimation with reference to Section 73(1)/ (5) or Section 74(1)/(5) of the GST Act to an assessee so that either he may deposit the amount of tax and interest or he may disagree to the ascertainment resulting in show cause notice.
The petitioner contended that it was issued by the State Tax officer and not the officer authorised under Section 73. The Show Cause Notice has been issued under extended time limit under Notification No.9/2023. The Show Cause Notice was challenged in writ petition.
The Court listed the matter on 23.09.2024.
Read More: https://jurishour.in/no-excise-duty-medicament-sample-house-testing-cestat/
About Comptroller and Auditor General of India
Prior to this, Shri Murmu was the first Lieutenant Governor of the Union Territory of Jammu and Kashmir. Before moving to Jammu and Kashmir, Shri Murmu served in various capacities in Government of India such as Secretary of the Department of Expenditure, Special and Additional Secretary in the Department of Financial Services and Department of Revenue, and Joint Secretary in the Department of Expenditure. Before his tenure at the Centre, Shri Murmu has served on important assignments in the State Government of Gujarat. He has wide experience in administrative, economic and infrastructure fields.
Shri Murmu is a postgraduate in Political Science from Utkal University. He holds an MBA degree from the University of Birmingham. He belongs to Indian Administrative Service of Gujarat cadre, 1985 batch.
Shri Murmu was born on 21st November 1959 in Mayurbhanj District of Odisha. He is married to Dr. Smita Murmu. They have a daughter Ruchika Murmu and a son Ruhaan Murmu.
In his spare time Shri Murmu likes to listen to Indian classical/sufi music, do amateur photography and sketching/painting. He also follows his routine gym regimen.
Shri Girish Chandra Murmu assumed office as the Comptroller and Auditor General of India on 8th August 2020.
Role Of CAG In GST
CAG has a responsibility to ensure accountability of GSTN to Parliament and state legislatures as it has a key role in the statutory function of tax administration. To carry out mandate assigned under the CAG’s (DPC) Act, 1971, especially in Section 16,it is essential that the organisation of CAG conducts IT audit of GSTN’s IT application, verifies the flow of data between GSTN portal and Central / State IT applications and audits the apportionment of IGST. Further, the accounts of GSTN also should be audited by the CAG as per provisions of Companies Act, besides verifying compliance to rules, policy / management decisions and government directives that apply to GSTN. Audit of GSTN is thus a very important component of revenue audit in GST regime.
Case Details
Case Title: Abbott Healthcare Private Limited V/S Excise And Taxation Commissioner And Others
Citation: CWP-19110-2024 (O&M), CWP-19112-2024 (O&M), CWP-19119-2024 (O&M) CWP-19124-2024 (O&M), CWP-19127-2024(O&M), CWP-19132-2024 (O&M) and CWP-19138-2024 (O&M)
Decision date: 08/08/2024
