Venky Re Rolling Private Limited Company vs. State Of Bihar

Facts

The petitioner, Venky Re Rolling Private Limited, is challenging an assessment order dated 10.10.2019, passed by the Assistant Commissioner of State Tax under Section 62 of the Bihar Goods and Services Tax Act, 2017. This order was issued because the petitioner failed to furnish returns under Section 39 or Section 45, even after receiving a notice under Section 46. Section 62(2) allows for the withdrawal of such an assessment order if a valid return is furnished within thirty days of its service, though liability for interest and late fees would persist. The petitioner did not file a return within this stipulated period. Subsequently, the Government of India issued a notification providing relief, in accordance with which the petitioner has now filed a return and satisfied the liabilities for interest and late fees.

Held

The Court held that the assessment order passed under Section 62 of the BGST Act would stand withdrawn if the petitioner's compliance with the subsequent Government of India notification is found to be in accordance with its terms. The reasoning is based on the petitioner's submission that they have filed the return and satisfied the liabilities for interest and late fees as per the notification. The Court acknowledged that the Assessing Officer has the right to verify this compliance. The ratio decidendi is that where a subsequent notification provides a mechanism for rectifying non-compliance with tax provisions, and the taxpayer avails this mechanism by fulfilling the prescribed conditions, the original assessment order should be deemed withdrawn, subject to verification of such compliance. The writ petition was allowed with the operative direction that the assessment order would stand withdrawn upon due compliance.

Key Issues

1. Whether the assessment order passed under Section 62 of the BGST Act stands withdrawn upon the petitioner furnishing a valid return and satisfying the liabilities for interest and late fees, in light of the subsequent Government of India notification? Petitioner's Argument: The petitioner contends that they have complied with the subsequent notification by filing the required return and satisfying the liabilities for interest and late fees. They argue that this compliance should lead to the withdrawal of the assessment order as per the spirit and intent of the notification. Revenue's Argument: The revenue, represented by the State of Bihar, has not recorded any specific arguments against the petitioner's claim. The judgment notes that the Assessing Officer would be entitled to verify the compliance with the notification.