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September 2024

Goods and Services Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang, Chartered Accountants
Reading Time 11 mins

HIGH COURT

Ashoka Fabricast Pvt. Ltd. vs. Union of India [2024] 20 Centax 105 (Raj.)

Dated: 1st May, 2024

39. GST Audit can be conducted under section 65 of the CGST Act even after cancellation of registration of taxpayer.

FACTS

Petitioner had applied for cancellation of GST registration, and the same was cancelled on 16th January, 2020. Further, petitioner was served with a notice for conducting GST Audit for the period from July 2017 to March 2020 on 6th March, 2023. Thereafter, SCN was issued on 1st June, 2023 and detailed reply was filed by the petitioner. Subsequently, an order was passed by respondent confirming the demand. Hence, the petitioner preferred this petition challenging initiation of Audit post cancellation of registration.

HELD

Hon. High Court held that section 29(3) of the CGST Act clearly states that cancellation of registration does not affect the liability of the taxpayer. The Court further stated that audit can be conducted for those past periods when registration was active as per section 65(1) of CGST Act. Accordingly, writ petition was disposed of.

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