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2023 (8) TMI 1089 - MADRAS HIGH COURTJurisdiction to conduct audit - the petitioner's registration is cancelled, now he is an unregistered concern - Failure to pay collected tax - closure of business - respondents submitted that the grounds raised in the Writ Petition cannot be accepted, since it is a recently closed unit and the respondent is having every right to conduct audit - HELD THAT:- Section 65 of CGST Act, states that the Commissioner or any other officer authorized through a general or specific order to conduct audit for any registered person. When the section specifically states 'any registered person', then it ought to be construed as existence concern and the unregistered person is exempted from the purview of the said section 65. But the contention of the respondent is that the audit is being conducted for a period from 2017-2018, 2021-2022. Therefore, the respondent claims that for the said period, the petitioner was a registered firm and for the said period, the respondent is empowered to conduct audit. On perusing Section 65, it is stated that the audit can be conducted to the said registered persons “for such period”, “for such frequency” and “in such manner”. When a Section provides for periodical audit, the respondent having failed to conduct audit for all these years, suddenly cannot wake up and conduct an audit. However, this will not preclude the respondent from initiating assessment proceedings for the said concern under Sections 73 and 74. Therefore, the said impugned order is liable to be quashed. Hence, the impugned order is quashed with liberty to the respondent to initiate assessment proceedings under Sections 73 and 74 of the Act. Petition allowed.
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