Tvl New Security Force vs. The Assistant Commissioner(St)
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The petitioner, Tvl New Security Force, is an assessee under the jurisdiction of the respondent, The Assistant Commissioner(ST). The petitioner failed to file their GST returns for August 2024. Consequently, the respondent issued a Form GSTR 3A notice on 25.11.2023 and subsequently passed an impugned order on 21.02.2024, which was an assessment order under Section 62 of the Tamil Nadu Goods and Service Tax Act, 2017. The petitioner then filed their returns belatedly on 22.04.2024. The impugned order was an attachment order, with reference number ZD330224126700Z, for the tax period October 2023, dated 21.02.2024.
Held
The Court held that the impugned order of assessment, passed under Section 62(1) of the Tamil Nadu Goods and Service Tax Act, 2017, stands automatically withdrawn in light of Section 62(2) of the Act. The reasoning is that the petitioner filed their returns belatedly on 22.04.2024, after the assessment order was passed on 21.02.2024. Section 62(2) mandates 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within thirty days of the service of the assessment order, the said assessment order shall be deemed to have been withdrawn.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 Court applied this statutory provision. The ratio decidendi is that the statutory provision for the deemed withdrawal of a best judgment assessment order upon filing a belated return is to be strictly followed. The Court 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. The amount already collected was to be adjusted against future liabilities, and the attachment on the bank account was to be lifted automatically.
Key Issues
1. Whether the best judgment assessment order passed under Section 62(1) of the Tamil Nadu Goods and Service Tax Act, 2017, is automatically deemed withdrawn upon the filing of a belated return, as stipulated in Section 62(2)? Petitioner's Contention: The petitioner argued that once a belated return was filed, the assessment order passed under Section 62(1) should be considered automatically withdrawn in terms of Section 62(2) of the Act. They relied on the statutory mandate of Section 62(2) which states that if a valid return is furnished within thirty days of the service of the assessment order, the assessment order shall be deemed to have been withdrawn. Respondent's Contention: The judgment does not record any specific arguments made by the respondent. However, the respondent had passed the impugned assessment and attachment order.
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
Cause title — parties, addresses and appearances
O R D E R 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 2/5 https://www.mhc.tn.gov.in/judis
3 W.P.(MD)NO.27439 OF 2025 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, Form GSTR 3A notice was issued on 25.11.2023. Thereafter, the impugned order was passed on 21.02.2024. While so, the petitioner herein filed their returns belatedly on 22.04.2024. 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 3/5 https://www.mhc.tn.gov.in/judis
4 W.P.(MD)NO.27439 OF 2025 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.With the aforesaid liberty to the respondent, this Writ Petition is allowed. No costs. Consequently, connected miscellaneous petitions are closed.
2025 NCS : Yes / No Index : Yes / No Internet : Yes/ No PMU To: The Assistant Commissioner(ST), Srirangam Assessment Circle, Trichy-06. 4/5 https://www.mhc.tn.gov.in/judis
5 W.P.(MD)NO.27439 OF 2025 G.R.SWAMINATHAN,J. PMU W.P.(MD)No.27439 of 2025 07.10.2025 5/5 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.