AG's Audit Visit to Factories and Premises of Assessees?
THE Calcutta High Court had recently passed an order restraining the Comptroller and Auditor General (CAG) of India from auditing a private enterprise. We promised to bring this order as soon as possible. We bring it to you today.
The petitioner had submitted that under the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971, audit regarding the accounts of the State and Central authorities or the State companies can be conducted and as it is evident that audit is sought to be conducted regarding a private company, that is, the writ petitioner, prayer is that an interim order may be passed.
The State submitted that since the scope of Section 16 of the said Act is wide and such enactment has been made to secure an effective check on the assessment, collection and proper allocation of revenue and as it relates to assessment of service tax, no interim order may be passed restraining the same.
The High Court held, "let there be an interim order directing that no audit be conducted by the authorities till 16th March, 2012 or until further orders, whichever is earlier"