SCN for the issues settled by the Audit, stayed by the HC
Table of Contents
Case details-
SCN for the issues decided by Audit stayed by court
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Facts-
A notice was issued to the taxpayer. But that issue was already settled in the audit for the same year. The contention of the petition was that once the issue is settled in the audit , it can not again be taken up in the scrutiny.
Observation-
After the issue including ineligible ITC availed and utilized for the financial year 2018-19 has been settled the Superintendent Range-V, CGST & CX Siliguri Division issued a notice intimating discrepancies in the Return after scrutiny for the selfsame financial year 2018-2019 and a pre-show cause notice dated 16th May, 2023 as well as the show cause notice dated 3rd November, 2023 has been issued.
The learned senior counsel for the petitioners challenges the said show cause notice on the following grounds:
(1) The show cause notice is time barred
(2) Proceedings by the State Tax authority as well as the Central Authority on the selfsame issue cannot be carried on simultaneously as the prior proceedings initiated at the instance of State Tax authority by issuance of an intimation under Section 61 is already pending.
(3) When the Audit Officer, upon being satisfied about the compliance made by the petitioners, has already observed that the issue is settled, whether such issue can again be reopened by the Central Authority by issuing the demand notice.
Comment-
| This is a very important issue. In many cases the scrutiny notices are sent by the department in cases where the issue is already settled via audit.
In this case the authority stayed the SCN and gave the time to the department to come up with their reply. Any further update related to this will be posted here. Pls keep in touch here. |
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