The Punjab and Haryana High Court has set aside two GST show cause notices issued following the report after the taxpayer said that the audit reply was overlooked.

The Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor directed the authorities to consider that material and prepare a fresh audit report within six weeks thereafter. It consequently set aside the show cause notices dated December 9 and December 16, 2024. Any fresh notices, the court said, must follow the audit report prepared under its directions.

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The dispute arose from an audit report issued in Form GST ADT-02 on December 4, 2024, against M/s GIL-TPL (JV). The taxpayer challenged the report, saying it had not been given a proper opportunity to address the discrepancies identified during the audit.

According to the taxpayer, it had submitted comments on those discrepancies, but the authorities finalised the report on the basis that no reply had been filed. It also challenged the subsequent show cause notices issued under Section 74 of the Central Goods and Services Tax Act, 2017.

The department later informed the court that the Deputy Excise and Taxation Commissioner, Ambala, was willing to revisit the matter after giving the taxpayer an opportunity to clarify the issues raised in the audit report.

The taxpayer’s counsel told the court that it would cooperate and provide the relevant details.

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