SKP SECURITIES LTD Vs. DEPUTY DIRECTOR

JUDGEMENT

(1.) This writ application has been filed inter alia challenging a Notice No. RA/ST/Prog/D/18/131, dated 3rd November, 2011 issued by the Office of the Principal Director of Audit, Central Kolkata for audit, by the Central Excise Revenue Audit (CERA) team, an audit team under the Comptroller and Auditor General of India, of the Service Tax records, accounts and other related documents of the petitioner-company. The audit was proposed to be held between 12th December, 2011 and 16th December, 2011 and the petitioner-company was required to provide suitable accommodation for the audit team. The short-question involved in this writ application is whether CERA, an audit wing of the Principal Director of Audit (Central), Kolkata under the Comptroller and Auditor General of India, has power and/or authority and/or jurisdiction to audit the accounts, Service Tax records or other documents of the petitioner-company, which is not an undertaking of the Central Government or any State Government.

(2.) The petitioner-company, incorporated under the Companies Act, 1956, is engaged in the business inter alia of trading in stocks and securities. The petitioner-company is a member of the Bombay Stock Exchange as well as the National Stock Exchange. Admittedly, the petitioner-company is not run out of funds or loan provided by the Central Government or any State Government or any other Government Undertaking or organization.

(3.) The petitioner-company has since 2004 been registered with the Service Tax authorities under the categories of 'Stock Broking service', 'Banking and Other Financial services' and 'Business Auxiliary Services' its Registration number being AAECS3847AST004.