Section 65 of the CGST Act, 2017 – Audit proceedings – No simultaneous investigation by other wings of department - The intra Court appeal is filed against the order dated 19th September, 2022, whereby, the petition was dismissed on the ground that the proceedings are in the nature of show cause notice. The Advocate for the appellants contended that three wings of the same department are proceeding against the appellants for the very same period, i.e. financial years 2017- 2018, 2018-2019 and 2019-2020. The first of the department which had taken action was the Audit Commissionerate, which had issued notice under Section 65. Further, four issues were pointed out for the said period, out of which two issues as pointed out by the audit was accepted by the appellants and the necessary tax and interest were remitted and for the remaining two issues, the appellants had submitted their response to the notice. In the meantime, the other two wings of the department, viz. Anti Evasion wing as well as the Range Office have also proceeded against the appellants by issuing notices for the very same period for which audit proceedings has already commenced. The court observed that since the audit proceedings has already commenced, it is but appropriate that the proceedings should be taken to the logical end. The proceedings initiated by the Anti Evasion and Range Office for the very same period shall not be proceeded with any further.

Held that:- The Hon’ble High Court set aside the order passed by the learned Single Bench and directed the first and fourth respondents to issue show cause notice to the appellants within a period of six weeks. Subsequently, a speaking order be passed on merits and in accordance with law within a period of three weeks. The second and third respondents are restrained from proceeding further against the appellants in respect of the very same period for which already action has been initiated by the first and fourth respondents.