Name:
Comfort Shoe
Components Vs.Assistant Commissioner,Ambur, Vellore
Court: IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated:
14.12.2023
Case
Details: W.P. Nos. 34770,
34774 & 34777 of 2023andW.M.P. Nos. 34756, 34761 & 34748 of 2023
Facts
of the Case:
·
Issue:The petitioner was unable to file their GST returns for the
months of December 2022, January 2023, and February 2023 within the prescribed
time limit.
·
Action Taken:Due to the non-filing of returns, the
respondent passed best judgment assessment orders under Section 62(1) of the GST
Act, 2017, on 28.03.2023 for December 2022 and January 2023, and on 10.04.2023
for February 2023.
·
Compliance: The petitioner subsequently filed the returns for December 2022
and January 2023 on 30.04.2023, and for February 2023 on 24.06.2023.
·
Argument:The petitioner argued that, as per Section 62(2) of the GST Act,
if returns are filed within 30 days from the date of the assessment order, the
order should be deemed to be withdrawn. The delay in filing returns was due to
financial difficulties, and the petitioner requested the Court to condone the
delay and quash the assessment orders.
Respondent:
Assistant Commissioner:
· Counter-Argument: The respondent, represented by Ms. Amirta
Dinakaran, argued that the benefit under Section 62(2) of the GST Act is
available only if the returns are filed within 30 days from the date of the
best judgment assessment orders. Since the petitioner did not file the returns
within the prescribed 30-day period, the respondent maintained that the
assessment orders should stand.
Judgment:
Hon'ble Mr. Justice Krishnan Ramasamy:
·
Legal Provision:The Court referred to Section 62 of the GST
Act, highlighting that the proper officer can assess the tax liability to the
best of his judgment if a registered person fails to file returns. Section
62(2) allows the withdrawal of the assessment order if valid returns are filed
within 30 days, but interest and late fees still apply.
·
Assessment of Situation:The Court noted that although the petitioner
failed to file returns within 30 days, the GST Act provides a five-year window
for making best judgment assessments from the end of the financial year for
which the annual return is due. The petitioner's financial year ended on
31.03.2023, and the period for filing annual returns ends on 31.12.2023.
Therefore, the respondent has until 31.12.2029 to pass the best judgment
assessment order.
·
Condonation of Delay: The Court reasoned that the limitation of 30
days under Section 62(2) is directory, not mandatory. If returns are filed
beyond 30 days due to reasons beyond the control of the registered person, the
delay can be condoned. The petitioner's right to file returns should not be
curtailed merely because they missed the 30-day window.
·
Direction: The Court directed the petitioner to file an application for
condoning the delay within 15 days of receiving the Court's order. The
respondent was instructed to consider the application on its merits, taking
into account the reasons for the delay, and permit the petitioner to file
revised returns.
Conclusion: The writ petitions were disposed of with
directions for the petitioner to apply for condonation of delay and for the
respondent to consider the application accordingly. No costs were awarded, and
connected miscellaneous petitions were also closed.
Order
Summary
1. Petitioner to file an application for
condoning the delay within 15 days.
2. Respondent to consider the application on
merits and permit filing of revised returns.
3. Writ petitions disposed of with the above
directions.
4. No costs awarded; connected miscellaneous
petitions closed.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
