Tvl Ganga Associates vs. State Tax Officer (St) (Fac)
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The petitioner, Tvl. Ganga Associates, failed to file its GST returns for September 2024. Following this non-compliance, the respondent authorities issued a GSTR 3A notice on July 27, 2023, and subsequently passed an impugned order on August 17, 2023, under Section 62 of the Tamil Nadu Goods and Service Tax Act, 2017. The petitioner then filed its returns belatedly on October 15, 2023. The petitioner sought to quash the impugned order, citing arbitrariness and violation of principles of natural justice.
Held
The Court held that the assessment order passed under Section 62(1) of the Tamil Nadu Goods and Service Tax Act, 2017, is deemed to have been withdrawn upon the filing of a valid return within thirty days of the service of the assessment order, as per Section 62(2). The Court reasoned that the statute clearly mandates this withdrawal. Although the petitioner filed its return belatedly on October 15, 2023, which was after the impugned order dated August 17, 2023, the Court applied the statutory provision of Section 62(2). The ratio decidendi is that the filing of a valid return, even if belated, nullifies a best judgment assessment order issued under Section 62(1). The Court declared the impugned order automatically withdrawn.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 for appropriate demand.
Key Issues
1. Whether the assessment order passed under Section 62(1) of the Tamil Nadu Goods and Service Tax Act, 2017, is automatically deemed withdrawn upon the filing of a valid return within thirty days of its service, as stipulated in Section 62(2)?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 argument: The petitioner contended that once a belated return was filed, the assessment order made under Section 62(1) should be considered withdrawn, as per the provisions of Section 62(2). They argued that while the statute prescribes a time limit for filing late returns, courts have held this limit to be non-mandatory. The petitioner relied on the principle that the filing of a valid return supersedes the best judgment assessment order. Revenue's argument: The judgment records no specific argument from the respondents.
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 September 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) 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 27.07.2023. 2/4 https://www.mhc.tn.gov.in/judis Thereafter, the impugned order was passed on 17.08.2023. While so, the petitioner herein filed their returns belatedly on 15.10.2023. 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.
With the aforesaid liberty to the respondent, this writ petition is allowed. No costs. Consequently, connected miscellaneous petitions are closed.
2025 Index : Yes / No Internet : Yes/ No rmi To 1.The State Tax Officer (ST) (FAC), Office of the Assistant Commissioner (ST), Palakkarai Assessment Circle, Trichy-01. 3/4 https://www.mhc.tn.gov.in/judis G.R.SWAMINATHAN, J. rmi 2.The Commercial Tax Officer, Office of the Assistant Commissioner (ST), Palakkarai Assessment Circle, Trichy-01. 13.10.2025 4/4 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.