M/S Drug Point PVT. LTD. vs. The Union Of INDIA

CWJC/5414/2023HC PatnaGSTCNR BRHC01030400202324 April 2023Bench: MR. JUSTICE MADHURESH PRASAD,THE CHIEF JUSTICE-4 pages

AI SummaryAllowed

Facts

The petitioner, M/s Drug Point Pvt. Ltd., is challenging an assessment order dated 14.12.2021 passed under Section 62 of the Bihar Goods and Services Tax Act, 2017 ("BGST Act"). This section empowers the proper officer to assess tax liability to the best of their judgment if a registered person fails to furnish a return under Section 39 or Section 45, even after a notice under Section 46. Sub-section (2) of Section 62 allows for the withdrawal of such an assessment order if a valid return is furnished within thirty days of its service, though liabilities for interest under Section 50 and late fee under Section 47 would persist. The petitioner did not file a return within this 30-day period. Subsequently, the Government of India issued a notification, following a recommendation from the GST Council, which the petitioner claims to have complied with by filing a return and satisfying liabilities for interest and late fee.

Held

The Court held that if the petitioner's compliance with the Government of India notification, by filing a return and satisfying the liabilities for interest and late fee, is found to be in accordance with the notification, then the assessment order dated 14.12.2021 would stand withdrawn. The reasoning is based on the petitioner's submission that they have fulfilled the conditions of the notification. The ratio decidendi is that compliance with a subsequent beneficial notification, even after the expiry of the statutory period under Section 62(2) of the BGST Act, can lead to the withdrawal of a best judgment assessment order, provided the Assessing Officer verifies such compliance. The operative direction is that the writ petition stands allowed, implying the assessment order is to be treated as withdrawn upon verification of compliance.

Key Issues

1. Whether the assessment order dated 14.12.2021, passed under Section 62 of the BGST Act, stands withdrawn in light of the petitioner furnishing a return and satisfying interest and late fee liabilities in accordance with the subsequent Government of India notification. Petitioner's Contention: The petitioner argued that they have complied with the conditions stipulated in the Government of India notification by filing a return and paying the requisite interest and late fees. They contended that this compliance should lead to the withdrawal of the assessment order. Revenue's Contention: The judgment does not record any specific arguments made by the respondents (Union of India and State of Bihar). However, the court noted that the Assessing Officer would be entitled to verify the compliance with the notification.

Sections Cited

Section 62, Section 39, Section 45, Section 46, Section 44, Section 62(2), Section 50(1), Section 47

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.5414 of 2023 ====================================================== M/s Drug Point Pvt. Ltd. Plot No. 199, Near Saguan State Bank, Bailey Road, Patna through its Director Srishti Nayyar, aged about 36 Years, Gender Female, Wife of Anupam Kumar, Resident of B-72, New Govind Pura, Street No. 14, Near Chander Nagar Bus Stand, Delhi, P.S. Krishna Nagar, East Delhi, District Delhi, Delhi-110051. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Ministry of Finance, Government of India, New Delhi. 2. The Principal Chief Commissioner, CGST, Central Revenue Building, Birchand Patel Path, Patna. 3. The State of Bihar through the Commissioner, Department of State Taxes, Government of Bihar, Patna. 4. The Additional Commissioner, State Tax (Appeals), Patna Central Division, Patna. 5. The Assistant Commissioner, State Tax, Patliputra Circle, District-Patna. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Alok Kumar, Advocate For the Respondent/s : Dr. K.N. Singh, ASG Mr. Vikash Kumar, SC-11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 24-04-2023 The petitioner is concerned with the assessment order passed on 14.12.2021, which is produced as Annexure-1 in the writ petition. As per Section 62 of the Bihar Goods and Services Tax Act, 2017 (“BGST Act” hereafter) where a registered person fails to furnish the return under Section 39 or Section 45, even after the service 2/4 of a notice under Section 46, the proper officer is empowered to assess the tax liability to the best of his judgment, within a period of five years from the date specified under Section 44 for furnishing of the annual return. Sub-section (2) of Section 62 also provides that when such an assessment order is made, if the registered person furnishes a valid return within thirty days of the service of the assessment order then the assessment order will stand withdrawn but the liability for payment of interest under sub-section (1) of Section 50 and the liability to late fee under Section 47 would continue. The petitioner obviously did not comply with sub- section (2) of Section 62 by filing a return within one month of the issuance of the assessment order. Now, the Government of India has on the recommendation of the GST Council, brought out the following notification:- 3/4

Learned counsel for the petitioner submits that in accordance with the notification, a return has been filed and the liability to interest and late fee also satisfied. Definitely, the Assessing Officer would be entitled to verify whether there is due compliance under the notification, herein above extracted, and if the compliance is in accordance with the 4/4 notification, the assessment order would stand withdrawn. The writ petition stands allowed.

Shyambihari/ sumit- (K. Vinod Chandran, CJ) ( Madhuresh Prasad, J) AFR/NAFR CAV DATE Uploading Date 25-04-2023 Transmission Date

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.