Darjeeling Flour Mills Audit Appeal Dismissed

Authority: Calcutta High Court, Circuit Bench at Jalpaiguri

Order Date: 01 July 2026

Parties: Darjeeling Flour Mills Pvt. Ltd. (appellant) vs Union of India & others (respondents).
Background: The appellant challenged a series of audit notices issued under Section 65 of the CGST Act, 2017 for financial years 2020‑2021 to 2023‑2024, alleging that the notices were issued without a Document Identification Number (DIN) and were time‑barred.
Lower Court Decision: The learned Single Judge dismissed the writ petition on 16 February 2026 as premature and did not interfere with the audit notice dated 6 January 2026.
Government Position: The Union of India relied on the Department of Revenue (CBIC) circular dated 23 September 2025, which states that the e‑Office “Issue number” is deemed to be the DIN and constitutes a valid communication.
Appellant’s Contentions: (i) The audit notice lacked a DIN; (ii) Audits for the 2020‑2021 period were beyond the permissible time limit; (iii) Fear that the audit could lead to coercive action under Sections 73 or 74 of the CGST Act.

The Court held that Section 65(1) of the CGST Act does not prescribe any time limit for conducting audits; therefore, the claim that the 2020 audit notice is time‑barred is unfounded.
It affirmed that the Issue number mentioned in the audit notice satisfies the DIN requirement as per the 23‑Sept‑2025 CBIC circular, and the notice is a valid communication.
The writ petition filed on the basis of apprehension of future coercive steps is not maintainable; consequently, the appeal is dismissed.
The appellant is directed to cooperate with the audit that the authority will conduct in accordance with law.

Topics: GST Audit, CGST Act, Court Judgment