P.Senthilkumar vs. The State Tax Officer(St)
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The petitioner, P. Senthil Kumar, is an assessee under the jurisdiction of the respondent, the State Tax Officer. The petitioner failed to file their Goods and Services Tax (GST) returns for January 2025. Following this non-compliance, the respondent issued a GSTR 3A notice on February 24, 2025, and subsequently passed an order on March 24, 2025, under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017, assessing the tax liability to the best of their judgment. The petitioner later filed their returns belatedly on September 16, 2025. The petitioner sought to quash the impugned assessment order and direct the respondent to unfreeze their bank account.
Held
The Court held that the impugned order of assessment passed under Section 62(1) of the Tamil Nadu Goods and Services Tax Act, 2017, stands automatically withdrawn upon the filing of a valid return by the registered person. This is in line with the statutory mandate provided in Section 62(2) of the Act, which states that if a registered person furnishes a valid return within thirty days of the service of the assessment order, the assessment order shall be deemed to have been withdrawn. The Court acknowledged that while the statute prescribes a time limit for filing late returns, judicial pronouncements have indicated that this time limit is not mandatory. Therefore, the belated filing of returns by the petitioner on September 16, 2025, rendered the best judgment assessment order withdrawn. The Court directed the respondent to verify the returns filed by the petitioner and, if any short payment is found, to issue a fresh show cause notice for appropriate demand. The attachment made on the petitioner's bank account was ordered to be de-frozen immediately.
Key Issues
1. Whether the best judgment assessment order passed under Section 62(1) of the Tamil Nadu Goods and Services Tax Act, 2017, is automatically deemed withdrawn upon the filing of a valid return within thirty days of its service, as stipulated in Section 62(2)? Petitioner's Contention: The petitioner argued that upon filing the belated returns, the assessment order stands automatically withdrawn as per Section 62(2) of the Act. They relied on the principle that courts have held the time limit for filing late returns not to be mandatory, and once a return is filed, the best judgment assessment order is rendered ineffective. Respondent's Contention: The judgment does not record any specific arguments made by the respondent. However, the respondent's action of passing the assessment order and freezing the bank account implies a contention that the petitioner's belated filing did not nullify the assessment order or the subsequent recovery actions.
Sections Cited
Section 62, Section 39, Section 45, Section 46, Section 44, Section 50, Section 47, Section 73, Section 74
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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 January 2025. 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 on 24.02.2025. Thereafter, the impugned order was passed on 24.03.2025. Whileso, the petitioner herein filed their returns belatedly on 16.09.2025. 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 attachment made on the writ petitioner's bank account shall be de-frozen immediately by the respondent. 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 State Tax Officer(ST) Tuticorin - II Assessment Circle, Tuticorin District. 4/6 https://www.mhc.tn.gov.in/judis 5/6 https://www.mhc.tn.gov.in/judis G.R.SWAMINATHAN, J. ias
2025 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.