M/S.Jeevan Auto Motor PVT. LTD. vs. The Assistant Commissioner (St)

Held

The Court allowed the writ petition and set aside the impugned order dated 28.10.2022. The decision was based on the proposed amendments to Section 62 of the CGST Act, which provide a window of 60 + 60 days for challenging an assessment order passed under Section 62(2) of the TNGST Act. The Court acknowledged that the petitioner had filed their returns after the initial period but before the extended timelines suggested by the GST Council recommendations and the subsequent Government Order. The Court granted liberty to the petitioner to file an appeal, subject to any penalties or interest that might be leviable. The appeal was directed to be filed within two weeks from the date of receipt of the order. The ratio decidendi is that in light of the legislative intent to provide a more lenient period for rectifying non-filing of returns leading to best judgment assessments, and considering the specific circumstances of unintentional delay and subsequent compliance, the assessment order should be revisited.

Facts

M/s. Jeevan Auto Motor Pvt. Ltd. (the petitioner) filed a writ petition challenging an order dated 28.10.2022 passed by the Assistant Commissioner (ST), Madurai Rural South Circle (the respondent). The order was issued under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act), deeming sales turnover due to the petitioner's failure to file their GSTR-3B return for August 2022 within the stipulated time. The petitioner contended that the delay in filing the GSTR-3B was due to their accountant's illness, while the GSTR-1 return was filed on time. They subsequently filed both GSTR-1 and GSTR-3B returns for August 2022 on 12.09.2022 and 01.12.2022, respectively, asserting no intention to evade tax. The petitioner argued that the assessment order suffered from procedural lacunae and violated principles of natural justice.

Key Issues

1. Whether the best judgment assessment order passed under Section 62 of the TNGST Act, for failure to file the GSTR-3B return within the stipulated time, is liable to be quashed, considering the subsequent filing of the return and the proposed amendments to Section 62 of the CGST Act. Petitioner's arguments: The petitioner argued that the impugned order, passed under Section 62 of the TNGST Act, was unreasonable and violative of natural justice. They highlighted that the delay in filing the GSTR-3B was unintentional, due to their accountant's illness, and that both GSTR-1 and GSTR-3B returns for August 2022 were eventually filed. They also brought to the court's attention the recommendations of the 49th GST Council Meeting to amend Section 62 of the CGST Act, extending the time for filing returns for deemed withdrawal of best judgment assessment orders from 30 days to 60 days, extendable by another 60 days, and an amnesty scheme for past cases. They submitted that a Government Order had come into effect extending best assessment judgment up to 30.06.2023. Respondent's arguments: The judgment does not record any specific arguments made by the respondent.