2023 (12) TMI 893 - HC - GST

Validity of best judgment assessment orders - attachment of the petitioner's Bank Accounts without any prior intimation to the petitioner or raising any demand - petitioner had filed returns for all the periods - HELD THAT - This Court is of the considered view that since the petitioner has filed the returns for the Assessment Years 2019-2020 to 2022-23 subsequent to restoration of GST Registration, the best judgment assessment orders passed by the 1st respondent dated 22.11.2022 25.11.2022, which are under challenge in WP Nos.4675, 4676, 4677 and 4684 of 2023 are liable to be set aside and the 1st respondent has to pass fresh assessment orders. The impugned orders are set aside and respondents are directed to pass fresh assessment orders, based on the returns filed by the petitioner for the Assessment Years 2019-2020 to 2022-23. Since the impugned best judgment assessment order is set aside, the consequential bank attachment order is stand lifted to the entire extent - Petition allowed.

Summary

Issues involved:
The issues involved in the judgment are the cancellation of GST registration, best judgment assessment orders, attachment of bank accounts, and restoration of GST registration.

Cancellation of GST registration:
The petitioner, a registered taxpayer under the GST Act, had their registration cancelled due to the sudden demise of their GST consultant, preventing them from filing returns. The cancellation was challenged as the petitioner later applied for revocation, which was allowed, and the registration was restored.

Best judgment assessment orders:
The 1st respondent initiated assessment proceedings against the petitioner for violating GST Act provisions. Subsequently, best judgment assessment orders were passed for multiple assessment years. The petitioner challenged these orders as they had filed returns after the restoration of their GST registration.

Attachment of bank accounts:
The respondents attached the petitioner's bank accounts without prior intimation or demand, based on the best judgment assessment orders. The petitioner sought to lift these attachment orders along with challenging the assessment orders.

Restoration of GST registration:
After the petitioner's registration was cancelled, they applied for revocation, which was granted, and the registration was restored by the 2nd respondent. Subsequently, the petitioner filed returns for the default assessment years.

Judgment:
The High Court held that since the petitioner filed returns for the assessment years after the restoration of their GST registration, the best judgment assessment orders were set aside. The 1st respondent was directed to make fresh assessment based on the returns filed by the petitioner. Consequently, the impugned orders were set aside, and the attachment orders on the petitioner's bank accounts were lifted. The writ petitions were allowed, and no costs were imposed.