2024 (8) TMI 1582 - HC - GST

Initiation of proceedings to conduct an audit in terms of Section 65 of the WBGST Act 2017 despite the final audit report u/s 65(6) of the CGST Act 2017 having been published in Form GST ADT 02 dated 15th April 2024 - parallel proceeding can be permitted to continue in respect of the self same tax period by two separate authorities or not - HELD THAT - Since it prima facie appears that a final report under Section 65(6) of the said Act has already been published which inter alia in paragraph 3 thereof records that the petitioner has made payment of the tax liability along with interest and penalty for the period 2022-23 no further proceedings can be continued against the petitioner for the self same period by the State authorities. List this matter for further consideration under the heading for final disposal in the combined monthly list of September 2024.

Summary

The Calcutta High Court, presided by Hon'ble Raja Basu Chowdhury, J., addressed a writ petition challenging the initiation of audit proceedings by State authorities under Section 65 of the WBGST Act, 2017, despite a final audit report under Section 65(6) of the CGST Act, 2017 having been published for the same tax period (2022-23). The petitioner argued that the State's parallel proceedings violated the principle against duplicate audits for the identical period, referencing a communication dated 1st April 2024 notifying the Deputy Commissioner of the CGST final report.The State contended that their audit pertained to a different financial year (2022-23) not covered by the CGST audit (2017-18 to 2021-22). However, the Court noted that the final CGST audit report explicitly recorded payment of tax liability, interest, and penalty for 2022-23, indicating completion of proceedings for that period. Consequently, the Court held that "no further proceedings can be continued against the petitioner for the self same period by the State authorities."Accordingly, the Court restrained the State respondents from proceeding based on their communication dated 4th April 2024 until disposal of the writ petition or further order, scheduling the matter for final disposal in September 2024.