M/S Chandan Kumar Singh vs. The Union Of INDIA

CWJC/5126/2023HC PatnaGSTCNR BRHC01026744202324 April 2023Bench: MR. JUSTICE MADHURESH PRASAD,THE CHIEF JUSTICE-4 pages

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Facts

The petitioner, M/s Chandan Kumar Singh, a sole proprietorship firm, is challenging an assessment order dated August 16, 2019. This order was passed under Section 62 of the Bihar Goods and Services Tax Act, 2017, for failure to furnish returns. The petitioner did not file a valid return within thirty days of the service of the assessment order, as stipulated by Section 62(2). Subsequently, the Government of India issued a notification based on the GST Council's recommendation. The petitioner has filed a return in accordance with this notification and has also satisfied the liabilities for interest and late fees.

Held

The Court held that the assessment order would stand withdrawn if the petitioner's compliance with the Government of India notification is found to be in accordance with its terms. The reasoning is that the notification provides a mechanism for withdrawal of assessment orders upon fulfillment of certain conditions. The petitioner has filed a return and satisfied the liabilities for interest and late fees as per the notification. The Court directed that the Assessing Officer should verify the due compliance under the notification. If the compliance is found to be in order, the assessment order would stand withdrawn. The ratio decidendi is that a subsequent beneficial notification, if complied with by the assessee, can lead to the withdrawal of a prior assessment order, subject to verification of compliance by the revenue.

Key Issues

1. Whether the assessment order dated August 16, 2019, stands withdrawn in light of the petitioner filing a return and satisfying liabilities for interest and late fees, pursuant to a subsequent Government of India notification? Petitioner's Argument: The petitioner contends that they have complied with the conditions laid out in the Government of India notification by filing a return and paying the requisite interest and late fees. Therefore, the assessment order should be considered withdrawn. Revenue's Argument: The revenue's argument is not explicitly recorded in the judgment. However, the judgment implies that the Assessing Officer is entitled to verify the compliance with the notification.

Sections Cited

Section 62, Section 39, Section 45, Section 46, Section 44, Section 50, 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.5126 of 2023 ====================================================== M/S Chandan Kumar Singh ( a sole Properitorship Firm) having its registered office at - Colony No. 1, Durga Sthan, P.S- Katihar Sadar, Distsrict- Katihar through its Sole Properitor Mr. Chandan Kumar Singh, aged about 55 years, S/o- Mr. Ganesh Prasad Singh. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Ministry of Finance, Department of Revenue, having its office at Room No. 46, North Block, P.O. and P.S. North Block , New Delhi- 110001. 2. The Chief Commissioner, CGST and CX, Office at- C.R Building, 1st Floor, Bir Chand Patel Path, Patna, Bihar. 3. The State of Bihar, through Commissioner BGST, New Secretariat, Patna. 4. Joint Commissioner of State Tax, Katihar Circle, District- Katihar. 5. Deputy Commissioner of State Tax, Katihar Circle, District- Katihar. 6. Assistant Commissioner of State Tax, Katihar Circle, District-Katihar. 7. Additional Commissioner (Appeal) of State Tax, Purnea Divsion, Purnea. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr.Anurag Saurav For the Respondent/s : Mr.Additional Solicitor General ====================================================== 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 16.08.2019, which is produced as Annexure-2 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.

M.E.H/uttam/- (K. Vinod Chandran, CJ) (Madhuresh Prasad, J) AFR/NAFR NAFR CAV DATE NA Uploading Date 25.04.2023 Transmission Date NA

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.