Orissa HC dismisses Writ Petition Challenging Audit Report being Premature [Read Order]

The Orissa High Court dismissed the writ petition which challenged the audit report since it was premature.

The petitioner, Shalimar Chemical Works challenged the audit report dated 24.03.2023 and the subsequent notice issued under Section 65 (6) of the Orissa Goods and Service Tax (OGST) Act, 2017 by which the petitioner has been directed to discharge its statutory liabilities as per the provisions of the Act and the Rules made thereunder, failing which proceeding as deemed fit may be initiated against it under the provisions of the Act.

Mr. Banerjee, counsel for the petitioner contended that against certain objections in the audit report, the petitioner is not liable to be charged with liability and, therefore, to the extent that where the petitioner is not liable to pay, the same should not be charged against the petitioner.

Mr. Sunil Mishra, Standing Counsel for the CT & GST contended that the writ petition is premature, since based on the audit report if any notice is issued to the petitioner in that case, the petitioner will be allowed to say about the correctness of the objections in the audit report issued by the authority concerned.

A two-judge bench comprising  Dr Justice B R Sarangi and Justice M S Raman observed that the petitioner has challenged the audit report under Annexure-4 contending that certain observations have been made in the audit report to which the petitioner is not liable to pay the amount.

Based on the audit report, the notice under Section 65 (6) of the Orissa Goods and Service Tax (OGST) Act, 2017 has been issued, where the petitioner has been directed to discharge its statutory liabilities as per the provisions of the Act and the Rules made thereunder, failing which proceedings as deemed fit may be initiated against it under the provisions of the Act.

It was evident that the petitioner has not come against any order passed by the authority concerned. “In any case, if the petitioner shall have any grievance about the audit report and the subsequent order in connection with notice, then he may object to the assessing authority. The petitioner shall get a chance to have its say in the assessment proceeding. Thus, this writ petition at this stage is premature one, for which this Court is not inclined to entertain the same. “ the Court held.

To Read the full text of the Order CLICK HERE

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