Petition Dismissed - Huge gain for petitioner and his tribe - Irreparable damage to respondent Revenue.
THIS is a very strange case where the losers are the winners and the winners are the losers.
The petitioners had challenged the intimation from the department asking for documents prior to audit. The petition is dismissed, but the ASG has committed before the High Court that:
1. Department will only collect documents
2. Actual Audit will be done by qualified chartered accountants.
3. After the audit report, the assessee will get the copy of the report
This means THE DEPARTMENTAL OFFICERS CANNOT PERFORM AUDIT OF THE ASSESSEES. Curtains down - no more audit by the Department.
This case is sure to go the Supreme Court, but until then, assessees can relax and politely tell the departmental auditors from the Service Tax department - sorry Sir, you cannot audit us.
We bring you this very important judgement today. Please see Breaking News.
Please also see:
Legal Corner Icon — the image was hosted by the publisher and was not captured.1. Should AG's Audit be allowed to visit factories and Premises of Service Tax Assessees? ( DDT 1298 )
2. AG's Audit Visit to Factories and Premises of Assessees? ( DDT 1776 )
3. CAG not authorised to visit factory of assessee in private sector
4. No Audit of Private Enterprises by AG's Audit - Calcutta High Court ( DDT 1951 )
5. Karnataka High Court grants Interim Stay against CAG Audit of Service Tax Assessee - DDT 2103 - 13.05.2013