The Delhi High Court has stayed the proceedings under show cause notice issued by GST anti-evasion wing.
The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that issued notice to the respondents and granted stay on proceedings under show cause notice issued by Anti-evasion. The principle ground of challenge was that such transfer is illegal, being without jurisdiction, and beyond statutory provisions. No reliance can be placed on internal guidelines/audit manual.
The petitioner is a registered taxpayer. An audit was conducted under section 65 for FY 2017-2018 to 2022-2023. The petitioner replied. An Audit report (in Form ADT-02) was issued. The petitioner replied. Audit sought trial balance for Delhi zone only.
The petitioner submitted that one trial balance is maintained for the entire country as an entity. The case was transferred by the audit to the anti evasion wing citing non co-operation by the petitioner. A show cause notice came to be issued by the Anti-evasion under section 74 alleging suppression of facts.
The notice was challenged in writ petition.
The petitioner contended that the audit was being undertaken by respondent department. Thereafter, in terms of a letter dated 26 February 2024, the respondent appears to have transferred the ongoing proceedings to the Anti-Evasion Wing of the Central Goods and Services Tax Commissionerate. The statute confers no such power of transfer upon the department.
The court restrained the department from taking further proceedings pursuant to the impugned Show Cause Notice dated 02 August 2024.
Read More: SVLDR Scheme Extends To Redemption Fine: Bombay High Court
Case Details
Case Title: M/S Siemens Healthcare Pvt Ltd Versus Union Of India & Ors.
Case No.: W.P.(C) 16562/2024 & CM APPL. 70043/2024 (Stay)
Date: 04/12/2024
Counsel For Petitioner: Bharat Raichandani
Counsel For Respondent: Ghanshyam Mishra
