M/S Balwant Construction PVT. LTD. vs. The State Of Bihar

Held

The Court granted the petitioner's learned counsel permission to withdraw the present petitions. Consequently, all the petitions were dismissed as withdrawn. Interlocutory applications, if any, were also disposed of. The Court did not delve into the merits of the case or decide on the specific issues raised by the petitioner regarding the validity of the assessment orders or the applicability of Section 62(2) of the GST Act. The ratio decidendi, therefore, is that a party has the right to withdraw their petition, and upon withdrawal, the case is dismissed without adjudication on its substance. No specific findings were made on the tax liability or the procedural correctness of the assessment orders.

Facts

The petitioner, M/s Balwant Construction Pvt. Ltd., filed multiple writ petitions before the Patna High Court challenging assessment orders passed by the Assistant Commissioner of State Taxes. These orders were passed under Section 62 of the GST Act, pursuant to best judgment assessments due to the petitioner's default in filing GSTR-3B returns for various tax periods, including April 2019, May 2019, June 2019, and March 2019. The petitioner sought to quash these assessment orders, requesting permission to furnish returns with late fees and to stay any recovery proceedings. In one petition (CWJC No. 404 of 2020), the petitioner also prayed for a direction to treat the assessment order as withdrawn, citing a valid return and tax payment filed after the service of the assessment order, in terms of Section 62(2) of the GST Act.

Key Issues

1. Whether the assessment orders passed under Section 62 of the GST Act, based on best judgment assessments for non-filing of GSTR-3B returns for April, May, June 2019, and March 2019, are liable to be quashed? (Question of law) 2. Whether the petitioner should be allowed to furnish returns with late fees for the defaulted periods? 3. Whether the assessment order dated 28/8/2019 in CWJC No. 404 of 2020 should be deemed withdrawn in light of a valid return and tax payment filed after the service of the assessment order, as per Section 62(2) of the GST Act? (Question of law) Petitioner's arguments: The petitioner contended that they should be allowed to furnish returns with late fees for the periods in question. In CWJC No. 404 of 2020, they argued that a valid return and tax payment were made after the assessment order, thus invoking Section 62(2) of the GST Act for withdrawal of the assessment. They sought quashing of the assessment orders and a stay on recovery proceedings. Revenue's arguments: The judgment records no specific arguments from the revenue side.