Facts of the Case

The petitioner, Kumar Piyush Construction Pvt. Ltd., Patna, was assessed under Section 62 of the Bihar Goods and Services Tax Act, 2017 (BGST Act) by an order dated 12.10.2019, on the ground of failure to furnish returns under Section 39/45 despite notice under Section 46. Under Section 62(2), a best-judgment assessment stands withdrawn if the registered person furnishes a valid return within thirty days of service of the order (though liability for interest under Section 50(1) and late fee under Section 47 continues). The petitioner had not complied with this thirty-day window at the time, but the Government of India, on the GST Council's recommendation, subsequently issued an amnesty notification enabling regularisation of such defaults on filing of returns and payment of interest/late fee.

Issues Involved

  1. Whether the petitioner's belated compliance, made pursuant to the subsequently issued amnesty notification (filing of return and payment of interest/late fee), entitled it to have the Section 62 best-judgment assessment treated as withdrawn.

Petitioner's Arguments

  • In accordance with the amnesty notification issued by the Government of India on the GST Council's recommendation, the petitioner had filed the return and also satisfied its liability to interest and late fee.

Respondent's Arguments

  • No specific opposing submissions are recorded; the matter turned on verification of the petitioner's compliance with the notification.

Court Order / Findings

  • The Court held that the Assessing Officer would be entitled to verify whether there was due compliance under the amnesty notification, and if the compliance is found to be in accordance with the notification, the Section 62 assessment order would stand withdrawn.
  • The writ petition was allowed on this basis.

Important Clarification

A best-judgment assessment order passed under Section 62 of the GST Act for non-filing of returns is liable to stand withdrawn — not merely reduced or stayed — where the registered person subsequently complies with the terms of a GST amnesty notification (filing the return and discharging interest and late fee), subject to the Assessing Officer's verification that such compliance genuinely satisfies the notification's conditions.

Sections Involved

  • Section 62, Bihar Goods and Services Tax Act, 2017 – empowers best-judgment assessment for failure to furnish returns despite notice, with sub-section (2) providing for automatic withdrawal of such assessment on furnishing a valid return within 30 days (interest and late fee liability surviving).
  • Section 46, Bihar Goods and Services Tax Act, 2017 – provides for notice to a registered person who fails to furnish a return.
  • Section 50(1) and Section 47, Bihar Goods and Services Tax Act, 2017 – provide respectively for interest on delayed tax payment and late fee for delayed return filing, both of which continue notwithstanding withdrawal of the Section 62 assessment.

Decision – In Favour of

The writ petition was allowed, subject to verification of compliance with the amnesty notification — the outcome favours the Assessee.

Case Details

Court: High Court of Judicature at Patna
Case No.: Civil Writ Jurisdiction Case No. 5387 of 2023
Coram: Hon'ble the Chief Justice K. Vinod Chandran and Hon'ble Mr. Justice Madhuresh Prasad
Date of Order: 24.04.2023

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