Tvl.Bernard Karuthudaiyan vs. The Deputy State Tax Officer - 2
Original PDF →Facts
The petitioner, Tvl. Bernard Karuthaudaiyan, failed to file their GST returns for August 2024. The respondent, The Deputy State Tax Officer - 2, Nagercoil, issued a notice under Section 62 of the TNGST Act, 2017, and subsequently passed an assessment order in Form GST ASMT-13 dated 16.10.2024. The petitioner then filed their returns belatedly on 21.11.2024. The petitioner challenged the assessment order through a writ petition, seeking its quashing on grounds of being cryptic, non-speaking, illegal, arbitrary, and without jurisdiction.
Held
The Court held that the assessment order passed under Section 62(1) of the TNGST Act, 2017, is deemed to have been withdrawn upon the filing of a valid return by the registered person within thirty days of the service of the assessment order, as per Section 62(2) of the Act. The Court reasoned that the statute itself provides for this deeming fiction. Therefore, the belated filing of the return by the petitioner on 21.11.2024, even though after the due date, effectively withdrew the assessment order dated 16.10.2024. The Court declared the impugned order automatically withdrawn. It granted liberty to the respondent to verify the returns filed by the petitioner and, if any short payment is found, to issue a fresh show cause notice. Any amount already collected was to be adjusted against future liabilities, and the attachment on the bank account was to be lifted.
Key Issues
1. Whether the assessment order passed under Section 62(1) of the TNGST Act, 2017, is automatically deemed withdrawn upon the filing of a valid return within thirty days of its service, as stipulated in Section 62(2) of the Act? Petitioner's contention: The petitioner argued that once a belated return was filed, the assessment order under Section 62(1) stood automatically withdrawn by operation of Section 62(2) of the Act. They relied on the principle that statutory time limits for filing returns are not always mandatory, and courts have held that belatedly filed returns can still be accepted. Respondent's contention: The respondent did not record any specific arguments against the petitioner's contention regarding the deemed withdrawal of the assessment order upon filing the return. The judgment notes that both sides were heard.
Sections Cited
Section 62, Section 39, Section 45, Section 46, Section 44, Section 50, Section 47, Section 73, Section 74
AI-generated summary — verify with the full judgment below
Before: and
Heard both sides. 2.The writ petitioner is an assessee coming under the juri iction of the respondent. The petitioner failed to file their returns for the month of August 2024. Section 62 of the Tamil Nadu Goods and Service Tax Act, 2017 reads as follows:- “62.Assessment
of non-filers
of returns. (1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates. 2/6 https://www.mhc.tn.gov.in/judis (2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue.” Invoking the said provision, GSTR 3A notice was issued. Thereafter, the impugned order was passed on 16.10.2024. Whileso, the petitioner herein filed their returns belatedly on 21.11.2024. Though the statute prescribes time limit of 60 days for filing the late returns, Courts have held that this time limit is not mandatory. Once the late return has been filed, the order making best judgement assessment is deemed to have been withdrawn. Applying the statutory mandate set out in Section 62(2) of the Act, it is declared that the impugned order stands automatically withdrawn. It is open to the respondent herein to verify the returns filed by the writ petitioner. If there is any short-payment, fresh show cause notice can be issued making appropriate demand from the assessee. The amount already collected from the writ petitioner shall be adjusted against the petitioner's future liabilities. The attachment made on the writ petitioner's bank account shall stand lifted automatically. 3/6 https://www.mhc.tn.gov.in/judis
With the aforesaid liberty to the respondent, this writ petition is allowed. No costs. Consequently, connected miscellaneous petitions are closed.
2025 NCC : Yes/No Index : Yes / No Internet : Yes/ No ias To: The Deputy State Tax Officer - 2 Nagercoil - Rural Assessment Circle Commercial Taxes Buildings Nagercoil. 4/6 https://www.mhc.tn.gov.in/judis 5/6 https://www.mhc.tn.gov.in/judis G.R.SWAMINATHAN, J. ias
2025 (1/4) 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.