M/S. Sss Shipping And Logistics vs. Assistant Commissioner
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The petitioner, M/s. SSS Shipping and Logistics, failed to file their GST return for August 2023. The respondent, The Assistant Commissioner, Tuticorin III, issued a GSTR 3A notice on September 25, 2023, and subsequently passed an order on October 13, 2023, under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017, making a best judgment assessment. The petitioner then filed their belated return on February 12, 2024. The petitioner sought to quash the assessment order and requested a remand for reconsideration.
Held
The Court held that the assessment order passed under Section 62(1) of the Tamil Nadu Goods and Services Tax Act, 2017, is deemed to have been withdrawn upon the filing of a valid return within thirty days of the service of the assessment order, as per Section 62(2).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 although the statute prescribes a time limit for filing late returns, this limit is not mandatory, and courts have held that once a late return is filed, the best judgment assessment order is automatically withdrawn. Applying this statutory mandate, the Court declared the impugned order automatically withdrawn. The respondent was granted liberty to verify the returns filed by the petitioner and, if any short payment was found, to issue a fresh show cause notice and make an appropriate demand. The Court did not expressly leave any issue undecided.
Key Issues
1. Whether the assessment order passed under Section 62(1) of the Tamil Nadu Goods and Services Tax Act, 2017, is automatically deemed to have been withdrawn upon the filing of a valid return within thirty days of the service of the assessment order, as stipulated in Section 62(2)? Petitioner's contention: The petitioner argued that once a belated return was filed, the best judgment assessment order stood automatically withdrawn as per Section 62(2) of the Act, citing that the time limit for filing such returns is not mandatory and that courts have held this position. They relied on the statutory mandate of Section 62(2). Revenue's contention: The judgment records no specific argument from the respondent Revenue.
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 August 2023. 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.” 2/4 https://www.mhc.tn.gov.in/judis Invoking the said provision, GSTR 3A notice was issued on 25.09.2023. Thereafter, the impugned order was passed on 13.10.2023. Whileso, the petitioner herein filed their returns belatedly on 12.02.2024. 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. 3.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 3/4 https://www.mhc.tn.gov.in/judis ias G.R.SWAMINATHAN, J. ias To: The Assistant Commissioner Tuticorin III, Tuticorin, Tamilnadu - 628001. 15.09.2025 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.