Facts of the Case

The petitioner, M/s Drug Point Pvt. Ltd., Patna, was assessed by an order dated 14.12.2021 under Section 62 of the Bihar Goods and Services Tax Act, 2017, on account of failure to furnish returns under Section 39/45 despite a Section 46 notice. Under Section 62(2), such a best-judgment assessment stands withdrawn if the registered person furnishes a valid return within thirty days of service of the order (interest and late fee liability continuing regardless); the petitioner, however, did not comply within that window. Subsequently, the Government of India, on the GST Council's recommendation, issued a notification permitting affected taxpayers a further opportunity to file returns and discharge interest and late fee. The petitioner approached the Patna High Court seeking recognition that, having filed returns and satisfied dues under that notification, the assessment order stood withdrawn.

Issues Involved

  1. Whether the petitioner, having missed the original thirty-day window under Section 62(2), could still have the assessment order treated as withdrawn by complying with the GST Council's amnesty notification.

Petitioner's Arguments

  • The petitioner's counsel submitted that, in accordance with the notification, a return had since been filed and the liability to interest and late fee also satisfied.

Respondent's Arguments

The order does not record a separate contested defence; the Department was entitled to verify compliance before treating the order as withdrawn.

Court Order / Findings

  • The Court reproduced Section 62(1) and (2) of the BGST Act, noting that the deeming provision for withdrawal ordinarily requires filing a valid return within thirty days, with interest and late-fee liability surviving regardless.
  • The Court held that the Assessing Officer would be entitled to verify whether there is due compliance under the notification, and if the compliance is found to be in accordance with the notification, the assessment order would stand withdrawn.
  • The writ petition was allowed in these terms, leaving verification of compliance to the Assessing Officer.

Important Clarification

  • A GST Council amnesty notification permitting late compliance with return-filing obligations can operate to secure the Section 62(2) deemed-withdrawal benefit even for taxpayers who missed the original thirty-day window, but the Assessing Officer retains the right to verify that compliance is in fact in accordance with the notification's terms before treating the order as withdrawn.

Sections Involved

  • Section 62, Bihar Goods and Services Tax Act, 2017 – best-judgment assessment of non-filers and its deemed-withdrawal mechanism.
  • Section 46, Bihar Goods and Services Tax Act, 2017 – notice to return defaulters, the precondition for a Section 62 assessment.

Decision – In Favour of

The decision is in favour of the Assessee, conditional on verified compliance with the amnesty notification — the assessment order was directed to be treated as withdrawn upon such verification.

Case Details

Court: High Court of Judicature at Patna
Case No.: CWJC No.5414 of 2023
Coram: Chief Justice K. Vinod Chandran and Justice Madhuresh Prasad
Date of Order: 24.04.2023

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