Audit by CAG: Punjab & Haryana HC stays GST SCN to Leading Pharma Manufacturer

The Punjab and Haryana High Court has stayed a Show Cause Notice (SCN) issued by the GST authorities to a leading pharmaceutical manufacturer following an audit by the Comptroller and Auditor General of India (CAG). The court’s decision to stay the SCN is based on the contention that the audit findings were not conclusive and required further examination. This ruling highlights the court’s role in ensuring that tax authorities do not act prematurely based on audit findings without sufficient evidence. The stay order provides temporary relief to the pharmaceutical company, underscoring the importance of thoroughness and due process in tax audits and assessments.