Supreme Court Halts CERA Audit Proceedings: Reinstates Interim Relief in Marwadi Shares Case

The apex court recently delivered a crucial order concerning the jurisdictional validity of audits conducted by the Comptroller and Auditor General (CERA) under the erstwhile indirect tax regime. In the significant matter of Marwadi Shares and Finance Ltd. Vs Union of India Ors., the Supreme Court of India stepped in to restore an earlier interim protection granted to the assessee, effectively halting the audit proceedings initiated by the revenue department.

Genesis of the Litigation

The assessee, operating as a registered stock brokerage firm, was served with a formal notice mandating an audit by CERA. Aggrieved by this directive, the assessee approached the Hon'ble Gujarat High Court to contest the validity of the notice.