Arumugam.S vs. The Deputy Commissioner (St)(Fac)

Facts

The petitioner, Arumugam.S, a registered works contractor under the GST Act, 2017, filed a writ petition challenging an order of best assessment dated 12.10.2022, passed by the State Tax Officer, Tuticorin II Assessment Circle. The impugned order was issued because the petitioner failed to file the monthly return for August 2022 (GSTR3B) within the stipulated time. The petitioner contended that he subsequently filed the return on 26.10.2022, along with the prescribed late fee, but this was not considered by the respondent authority. The petitioner argued that this filing should have led to the withdrawal of the best assessment order as per Section 62 of the GST Act, 2017.

Held

The Court allowed the writ petition. It held that the impugned best judgment assessment order dated 12.10.2022, passed by the State Tax Officer, was to be set aside. The Court reasoned that the petitioner had filed the monthly return for August 2022 on 26.10.2022, which was within the 30-day period stipulated under Section 62(2) of the GST Act, 2017, for the assessment order to be deemed withdrawn. The Court accepted the submission of the respondents to remand the matter back for fresh consideration in light of Section 62. Consequently, the bank attachment initiated pursuant to the impugned order was also ordered to be released. No costs were imposed.

Key Issues

1. Whether the best judgment assessment order passed under Section 62(1) of the GST Act, 2017, is deemed withdrawn if a valid return is furnished within thirty days of its service, as stipulated in Section 62(2) of the Act? The petitioner argued that Section 62(2) of the GST Act, 2017, clearly states that if a registered person furnishes a valid return within thirty days of the service of the assessment order, the said assessment order shall be deemed to have been withdrawn. The petitioner asserted that he filed the return for August 2022 on 26.10.2022, which was within 30 days of the service of the assessment order, and paid the requisite late fee, thereby fulfilling the conditions of Section 62(2). The respondents, through the Additional Government Pleader, did not contest the petitioner's argument on the merits of Section 62. Instead, they suggested that the impugned order be set aside and remanded back for fresh consideration in light of Section 62 of the GST Act, 2017.