M/S. Reddy Enterprises vs. The Assistant Commissioner (State Taxes)
Held
The Court disposed of the writ petition by recording the submissions of both parties. The Court directed the 1st respondent to verify the web portal. If the returns claimed to be submitted by the petitioner for the months of June, August, and September 2021, in addition to July 2021, are found, the 1st respondent shall consider these returns along with the returns for July 2021. Following scrutiny, a fresh assessment order shall be passed in accordance with the law and communicated to the petitioner expeditiously. The Court also stated that if the petitioner is aggrieved by the fresh assessment order, they can pursue available legal remedies. Until the fresh assessment order is passed, no coercive action shall be initiated against the petitioner pursuant to the impugned assessment order dated 17.11.2021. The issue of whether the impugned order should have been automatically withdrawn upon filing the returns was implicitly addressed by directing a fresh assessment after considering all filed returns.
Facts
The petitioner filed a writ petition seeking a mandamus to declare the action of the respondents in not withdrawing impugned orders in Form ASMT-13, dated 17.11.2021, for the months of June to September 2021, as illegal. The petitioner contended that after receiving a show-cause notice for non-submission of returns, they filed GSTR 3B returns for June to September 2021 on 17.12.2021, within the 30-day period prescribed under Section 62(2) of the A.P. GST Act. However, the impugned assessment order and consequential demand were not deleted from the portal. The revenue admitted that returns were filed only for July 2021, which were under scrutiny, and the returns for other months were not received.
Key Issues
1. Whether the 1st respondent is legally obligated to withdraw the impugned assessment order dated 17.11.2021 and consequential demand upon the petitioner filing GSTR 3B returns for the months of June to September 2021, as per Section 62(2) of the A.P. GST Act, 2017? Petitioner's Arguments: The petitioner argued that they had filed their GSTR 3B returns for the months of June to September 2021 on 17.12.2021, within the stipulated 30-day period following the assessment order. Therefore, the impugned assessment order and demand should have been withdrawn, and the returns should have been considered. They relied on the principle that filing returns post-assessment order, within the statutory period, rectifies the non-compliance that led to the assessment. Revenue's Arguments: The revenue admitted that returns were filed for July 2021, which were under scrutiny. However, they contended that returns for the remaining months (June, August, and September 2021) were not received. They stated that the portal would be verified, and if the returns were found, they would be considered. They did not dispute the applicability of Section 62(2) but raised a factual dispute regarding the receipt of all returns.
Sections Cited
Section 62(2)
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HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SRI JUSTICE T.MALLIKARJUNA RAO
WRIT PETITION No.36440 of 2022
ORDER: (per UDPR, J)
The petitioner seeks writ of mandamus declaring the action of the respondents in not withdrawing the impugned orders I Form ASMR-13, dated 17.11.2021 for the months of June to September, 2021 under the A.P. Goods & Service Tax Act, 2017 as illegal, arbitrary and for a consequential direction to the 1st respondent to update the demands considering the GST returns filed by the petitioner for the months June to September, 2021. 2. Heard learned counsel for petitioner, Sri Srinivasa Rao Kudupudi and learned Government Pleader for Commercial Taxes – I and having regard to the nature of the prayer, this writ petition is disposed of at the admission stage with the consent of the learned counsel.
The main grievance of the petitioner as ventilated by his counsel is that on the ground that the petitioner has not submitted his returns for the months June to September, 2021 pursuant to
2 show-cause notice and thereby, the 1st respondent has passed the impugned assessment order dated 17.11.2021 and uploaded on the web p
The judgment continues below.
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