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2019 (8) TMI 396 - HC - Service TaxPower to audit by the service tax department - Rule 5A(2) - power of officers post GST since provision of Chapter V of Finance Act, 1994 repealed - scope of saving clause - petitioner's contention is that the internal audit is nowhere defined under the Finance Act, 1994 and he is not having any authority to conduct the audit and to demand the documents - Section 173 and 174 of the Central Goods and Services Act, 2017 as well as Section 72-A of the Finance Act, 1994 - principles of natural justice - HELD THAT:- As the provisions of Section 174(2) also is clearly applicable in respect of an omission of the enactment under Section 173, therefore, any such investigation, enquiry, etc., that was instituted, continued or enforced under Chapter V of the Finance Act of 1994, continues to remain in place inspite of such omission of Chapter V of the Finance Act. In other words, Section 174(2)(e) is a savings clause in respect of any investigation, enquiry etc., that was/to be instituted under Chapter V of the Finance Act of 1994. A conjoint reading of Section 173 and 174(2)(e) would show that while bringing an omission to the provision of Chapter V of the Finance Act of 1994, a savings clause for continuing with the proceedings initiated/to be initiated was also duly provided. If a statute stood omitted with a savings clause, the savings clause would not render it impermissible for the proceedings initiated/to be initiated under Chapter V of the Finance Act of 1994, which stood omitted by Section 173 of the CGST Act of 2017 to be continued. This Court is of the considered opinion that no case for interference is made out in the matter specially when, the show-cause notice has been issued - petition dismissed.
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