The Division bench of Calcutta High Court has held that no repeated proceedings against same issue and quashed spot memo issued by department.
The writ petitioners Ideal Unique Realtors Private Limited & Anr, challenged the jurisdiction of the Sr. Audit Officer in issuing communications enclosing a memo called as “spot memo”. The appellant was in dispute with the action of audit department to issue such notice.
The appellant placed reliance on the decision of the High Court of Bombay in Kiran Gems Private Limited Vs. Union of India, submitted that Central Excise Revenue Audit (CERA) cannot conduct audit of records of a private entity apart from stating that the appellants have pointed out that for the self. For the same reason three earlier proceedings were commenced but none of the proceedings come to a logical end.
The Tribunal observed that the appellants were treated unfairly by the department. The very same TRAN – 1 issue of the appellants have repeatedly been summoned, issued notices etc. by the department since 2008 onwards. The spot memos, is also for the very same purpose. The Tribunal has further observed that it is not clear as to why different wings of the very same department have been issuing notices and summons to the appellants without taking any of the earlier proceedings to the logical end. If there is an irregularity in the availment of credit, then appropriate proceedings under the Act should be initiated and the matter should be taken to the logical end.
The Coram of Mr. Justice T. S. Sivagnanam and Justice Hiranmay Bhattacharyya has held that “we are of the view that the spot memos, which have been furnished along with the communications dated 22nd March, 2021 cannot be enforced”.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
