Facts of the Case

The petitioner, M/s Ashok Kumar Jha, a Saharsa-based proprietorship, was subjected to a best-judgment assessment order dated 23.06.2022 under Section 62 of the Bihar Goods and Services Tax Act, 2017, for failure to furnish returns despite notice under Section 46. The petitioner had not filed a valid return within thirty days of the assessment order as contemplated under Section 62(2), which would ordinarily be necessary for the assessment to stand automatically withdrawn. However, the Government of India, on the GST Council's recommendation, subsequently issued a notification permitting late filing of such returns under specified conditions (with payment of interest under Section 50 and late fee under Section 47), and the petitioner claimed to have filed the return and discharged the corresponding interest and late fee liability under that notification.

Issues Involved

  1. Whether an assessment order under Section 62(1) of the BGST Act would stand withdrawn under Section 62(2) where the return, though filed beyond the original thirty-day window, was filed and dues discharged in accordance with a subsequent government notification permitting such compliance.

Petitioner's Arguments

  • In accordance with the notification issued pursuant to the GST Council's recommendation, the petitioner had filed the return and satisfied the interest and late fee liability, and was therefore entitled to have the assessment order treated as withdrawn.

Respondent's Arguments

  • The order does not record any substantive contest by the respondents to the fact of filing pursuant to the notification; the matter proceeded on the basis that verification of compliance was necessary.

Court Order / Findings

  • The Court noted that the petitioner had admittedly not complied with Section 62(2) by filing a return within one month of the original assessment order, but the subsequent government notification (issued on the GST Council's recommendation) permitted filing beyond that window on payment of interest and late fee.
  • The Court held that the Assessing Officer would be entitled to verify whether there was due compliance with the notification, and if the compliance was found to be in accordance with the notification, the assessment order would stand withdrawn.
  • The writ petition was accordingly allowed, in effect directing verification of compliance and consequential withdrawal of the assessment order upon such verification.

Important Clarification

A best-judgment assessment order under Section 62(1) of the GST Act is not necessarily rendered final merely because the assessee missed the original thirty-day window under Section 62(2); where a subsequent government notification (issued on the GST Council's recommendation) extends an opportunity to file the return with interest and late fee beyond that window, compliance with such notification — subject to verification by the Assessing Officer — entitles the assessee to have the assessment order treated as withdrawn.

Sections Involved

  • Section 62, BGST/CGST Act, 2017 — provides for best-judgment assessment of non-filers and deemed withdrawal on subsequent compliance.
  • Section 46, BGST/CGST Act, 2017 — provides for notice to return defaulters.
  • Sections 47 & 50, BGST/CGST Act, 2017 — prescribe late fee and interest liability respectively.

Decision – In Favour of

In favour of the Assessee — the writ petition was allowed, with the assessment order to stand withdrawn upon verification of compliance with the applicable notification.

Case Details

  • Court: High Court of Judicature at Patna
  • Case Number: Civil Writ Jurisdiction Case No.3995 of 2023
  • CNR / Citation: CWJC No.3995 of 2023
  • Coram: Hon'ble the Chief Justice K. Vinod Chandran & Hon'ble Mr. Justice Madhuresh Prasad
  • Date of Order: 25 April 2023

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