Kumar Piyush Construction PVT. LTD. vs. The State Of Bihar

Facts

The petitioner, Kumar Piyush Construction Pvt. Ltd., is challenging an assessment order dated 12.10.2019 passed by the Joint Commissioner of State Taxes, Kadam Kuan Circle, Patna. This order was issued under Section 62 of the Bihar Goods and Services Tax Act, 2017, for failure to furnish returns under Section 39 or 45, despite a notice under Section 46. The petitioner did not file a valid return within thirty days of the assessment order, as stipulated by Section 62(2) of the BGST Act, which would have withdrawn the assessment order. Subsequently, the Government of India issued a notification, based on the recommendation of the GST Council, providing a mechanism for filing returns and satisfying liabilities. The petitioner has filed a return and satisfied the liabilities as per this notification.

Held

The Court held that if the petitioner has complied with the subsequent notification by filing a valid return and satisfying the liabilities for interest and late fees, the assessment order dated 12.10.2019 would stand withdrawn. The Court acknowledged that the Assessing Officer is entitled to verify the due compliance under the notification. The ratio decidendi is that a subsequent beneficial notification, if complied with by the assessee, can lead to the withdrawal of a previously passed assessment order under Section 62 of the BGST Act, provided the conditions stipulated in the notification are met. The operative direction was that the writ petition stands allowed, implying the assessment order is deemed withdrawn upon verification of compliance.

Key Issues

1. Whether the assessment order dated 12.10.2019, passed under Section 62 of the BGST Act, stands withdrawn upon the petitioner filing a valid return and satisfying the liabilities in accordance with the subsequent notification issued by the Government of India. Petitioner's Argument: The petitioner contends that they have complied with the provisions of the notification by filing the requisite return and satisfying the liabilities for interest and late fees. Therefore, the assessment order should be considered withdrawn. Revenue's Argument: The revenue has not recorded any specific argument against the petitioner's claim in the judgment. The judgment notes that the Assessing Officer is entitled to verify the compliance with the notification.