Ganga Construction Company vs. The State Of Bihar

Facts

The petitioner, Ganga Construction Company, is challenging an assessment order dated August 6, 2019, 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 45, even after 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not file a valid return within thirty days of the assessment order, as stipulated by Section 62(2), which would have withdrawn the assessment order, though interest and late fees would still be payable. Subsequently, the Government of India issued a notification based on the GST Council's recommendation. The petitioner claims to have filed a return and satisfied the liabilities for interest and late fee in accordance with this notification.

Held

The Court held that the assessment order would stand withdrawn if the petitioner's compliance with the notification issued by the Government of India is found to be in accordance with its terms. The Court acknowledged that the Assessing Officer is entitled to verify whether the petitioner has duly complied with the provisions of the notification. If the compliance is found to be in order, the assessment order would be deemed withdrawn. The Court did not delve into the specifics of the notification or the petitioner's compliance beyond this general principle. The operative direction was to allow the writ petition, implying that the process of verification and potential withdrawal of the assessment order should proceed.

Key Issues

1. Whether the assessment order dated August 6, 2019, stands withdrawn in light of the notification issued by the Government of India and the subsequent filing of a return and payment of interest and late fee by the petitioner, as per the petitioner's contention. 2. Whether the petitioner has complied with the conditions stipulated in the notification issued by the Government of India, enabling the withdrawal of the assessment order, as argued by the petitioner. Petitioner's Arguments: The petitioner argued that they have filed a return and satisfied the liabilities for interest and late fee in accordance with the recent notification issued by the Government of India on the recommendation of the GST Council. They contend that this compliance should lead to the withdrawal of the assessment order. Revenue's Arguments: The judgment does not record any specific arguments from the revenue or state respondents. However, it notes that the Assessing Officer would be entitled to verify the compliance made by the petitioner under the notification.