M/s NL Tile Art Private Limited v. Additional Commissioner of Commercial Taxes (SMR-2), Bangalore

Whether Revision Under Section 108 Can Be Invoked Against an Audit Report Without Initiating Proceedings Under Sections 73 or 74?

Introduction

This important judgment of the Karnataka High Court examines the scope and limits of the revisional powers conferred under Section 108 of the CGST/KGST Act, 2017. The controversy arose when the department sought to invoke revisionary jurisdiction to reopen and revise findings contained in an audit report, instead of initiating adjudication proceedings under Sections 73 or 74 as contemplated by the GST law.