2019 (9) TMI 1184 - HC - GST

Assessment order u/s 62 of the GST Act - failure to file returns within time - Extension of time for filing returns - HELD THAT - The statutory prescription of 30 days from the date of receipt of the assessment order passed under sub section (1) of Section 62 has to be strictly construed against an assessee and in favour of the revenue since this is a provision in a taxing statute that enables an assessee to get an order passed against him on best judgment basis set aside. The provision must be interpreted in the same manner as an exemption provision in a taxing statute. This Court may not be justified in granting an extension of the period contemplated under sub section (2) of Section 62 so as to enable the assessee to file a return beyond the said period for the purposes of getting the benefit of withdrawal of an assessment order passed on best judgment basis under Section 62(1) of the GST Act. Petition dismissed.

Summary

Issues:
1. Validity of best judgment assessment orders under Section 62 of the GST Act.
2. Interpretation of provisions allowing withdrawal of best judgment assessment orders.
3. Construal of the statutory time frame for filing returns and paying tax under Section 62(2) of the SGST Act.

Analysis:
1. The petitioner, an assessee under the GST Act, defaulted on filing returns from July 2018 onwards, leading to best judgment assessment orders by the 1st respondent. The petitioner challenged Ext.P1 series of assessment orders, alleging non-adherence to Section 62 guidelines for best judgment assessments.
2. Section 62 of the SGST Act mandates best judgment assessments when an assessee fails to furnish required particulars for assessment. The provision allows for withdrawal of such orders if a valid return is filed within 30 days of the assessment order, with the liability for interest remaining. The court emphasized strict adherence to the statutory time frame for filing returns and paying taxes to cancel best judgment assessments.
3. Despite the petitioner's claim of inability to pay the admitted tax liability within the specified time frame, the court held that the 30-day period under Section 62(2) must be strictly construed in favor of revenue. Granting extensions beyond the statutory limit for filing returns to withdraw best judgment assessments was deemed unjustifiable, akin to interpreting an exemption provision in a taxing statute.
4. Consequently, the court dismissed the writ petition, ruling against granting an extension of the prescribed period for filing returns under Section 62(2) to enable withdrawal of best judgment assessment orders. The decision underscored the importance of timely compliance with statutory provisions in tax matters, emphasizing the stringent interpretation of timelines and procedures under the GST Act.