Facts of the Case

The petitioner challenged the assessment proceedings initiated by the tax authorities under Section 62 of the Andhra Pradesh GST Act, whereby a best judgment assessment was passed on 01.09.2022 demanding ₹2,01,154/-. The assessment was made because the petitioner failed to file the GST return for the month of June 2022.

The petitioner admitted that the return was not filed within the prescribed time and that a notice under Section 46 had been issued. However, the petitioner subsequently filed the pending GST return on 14.09.2022, which was within one month from the date of the assessment order as contemplated under Section 62(2) of the Act. Accordingly, the petitioner sought setting aside of the assessment order and requested the authorities to consider the return already filed.

 

Issues Involved

  1. Whether a best judgment assessment passed under Section 62 of the APGST Act should continue when the taxpayer files the pending return within one month of the assessment order.
  2. Whether the assessing authority is required to consider the subsequently filed GST return in terms of Section 62(2) of the Act.
  3. Whether the petitioner should be granted an opportunity to seek reconsideration of the assessment after filing the pending return.

 

Petitioner's Arguments

  • The petitioner admitted that the GST return for June 2022 had not been filed within time.
  • It was submitted that although the assessment order had been passed, the pending return was filed on 14.09.2022, i.e., within one month from the date of the assessment order.
  • The petitioner contended that Section 62(2) entitled him to have the subsequently filed return considered.
  • It was therefore requested that the impugned assessment order be set aside and the authorities be directed to consider the return filed by the petitioner.

 

Respondent's Arguments

The Government Pleader, upon instructions, acknowledged that:

  • The petitioner had filed the pending return on 14.09.2022, within one month from the assessment order.
  • If the petitioner submitted a fresh representation, the competent authority would examine the return and consider the matter in accordance with law.

 

Court Order / Findings

The Andhra Pradesh High Court disposed of the writ petition with the following directions:

  • The petitioner was granted liberty to submit a representation before the assessing authority within two weeks from receipt of the Court's order.
  • Upon receipt of such representation, the assessing authority was directed to consider the GST return filed on 14.09.2022.
  • The authority was further directed to pass appropriate orders strictly in accordance with the applicable provisions of law and the governing rules.
  • No order as to costs was made, and all pending interlocutory applications stood closed.

 

Important Clarification

  • A best judgment assessment under Section 62 does not automatically become final where the registered person files the pending return within the statutory period provided under Section 62(2).
  • Filing the return within one month enables the taxpayer to seek consideration of the return by the proper officer.
  • The High Court emphasized that the tax authorities should examine such returns and pass fresh orders in accordance with law.
  • The judgment reinforces the statutory safeguard available to taxpayers who rectify the default within the prescribed period.

Sections Involved

  • Section 46 of the Andhra Pradesh Goods and Services Tax Act, 2017 – Notice to Return Defaulters.
  • Section 62 of the Andhra Pradesh Goods and Services Tax Act, 2017 – Assessment of Non-Filers of Returns (Best Judgment Assessment).
  • Section 62(2) of the Andhra Pradesh Goods and Services Tax Act, 2017 – Withdrawal/Validity of Best Judgment Assessment upon furnishing valid return within the prescribed period.

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782968859_78compressed.pdf

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