Gujarat High Court rules multiple ADT-01 notices don’t invalidate audit if report issued within 3 months of actual audit start. Department must inform assessee of missing documents.
Gujarat HC Upholds GST Audit Validity Despite Repeated ADT-01 Notices
The Gujarat High Court has ruled that repeated issuance of ADT-01 notices during a GST audit does not invalidate the process, provided the final audit report is issued within three months of the actual commencement of the audit under Section 65 of the CGST Act. The court also held that the department is obligated to inform the registered person of any missing documents.
Challenging a reassessment, the taxpayer argued that four successive ADT-01 notices rendered the audit proceedings arbitrary. The court rejected this, stating that procedural delays due to document non-submission cannot be attributed to the department if the taxpayer failed to comply. However, it clarified:
“The audit party must, in fairness, specify deficiencies in writing to enable meaningful compliance.”
For practitioners, this reaffirms the importance of proactive engagement during GST audits. While repeated notices are permissible, authorities must maintain transparency. Taxpayers should also ensure timely submissions to avoid extended timelines and potential scrutiny.
Citations
- Section 65, CGST Act
- CCE v. Reliance Industries Ltd. (2015) 62 taxmann.com 1 (Guj)
