2024 (4) TMI 511 - HC - GST

Condonation of delay in filing returns - due to ill-health, returns could not be filed within the time prescribed by the second respondent - notice issued and best judgement assessment made - HELD THAT - The petitioner has failed to file the monthly returns in GSTR 3B for the month of July 2023 in time. Therefore, notice was issued under Section 46 of the GST Act, 2017 and best judgment assessment was made. The petitioner has paid the tax on the 31st day from the date of the best judgment assessment order. However, the respondents have insisted the petitioner to pay the demand as per the order passed by the second respondent under best Judgment assessment and demanded the tax. According to the petitioner, as per Section 62(2) of the GST Act, 2017 the time to file the returns has been extended to 60 days and the amendment was given effect from 01.10.2023. This writ petition is allowed with a direction to the petitioner to file an application to condone the delay in filing the returns within 15 days from the date of receipt of a copy of this order. On such filing of an application by the petitioner, the respondents are directed to consider the said application and pass orders by taking into consideration of the reasons provided by the petitioner for non-filing of returns within a period of 30 days from the service of best judgement assessment order and thereafter, permit the petitioner to file the revised returns.

Summary

Issues:
The case involves failure to file monthly returns in GSTR 3B within the due date, issuance of notice under Section 46 of the TNGST Act, 2017, best judgment assessment, demand for tax amount, and interpretation of Section 62(2) of the State Goods and Service Tax Act, 2017.

Judgment Summary:

Issue 1: Failure to File Returns and Best Judgment Assessment
The petitioner, a works contractor, failed to file monthly returns in GSTR 3B for July 2023 within the due date. Consequently, a notice was issued under Section 46 of the TNGST Act, 2017, and a best judgment assessment was made by the second respondent demanding a tax amount. The petitioner submitted returns with interest and late fee after 31 days from the assessment order, leading to a dispute with the second respondent.

Issue 2: Interpretation of Section 62(2) of the GST Act
The petitioner argued that Section 62(2) of the GST Act, 2017 allows for the withdrawal of a best judgment assessment order if returns are filed along with interest within 30 days from the date of receipt of the order. The petitioner relied on an amendment extending the time limit to 60 days effective from 01.10.2023. Reference was made to a previous order by the Principal Seat of the Court, emphasizing that delay in filing returns can be condoned with sufficient cause.

Judgment:
After considering the submissions, the Court noted the petitioner's failure to file timely returns, the insistence by the respondents to pay the tax as per the best judgment assessment order, and the petitioner's reliance on Section 62(2) of the GST Act. Referring to a previous Court order, the judgment highlighted that the right to file returns cannot be curtailed arbitrarily, especially if there are valid reasons for delay beyond the assessee's control. The Court directed the petitioner to file an application to condone the delay in filing returns within 15 days, with instructions for the respondents to consider the application and permit the petitioner to file revised returns based on the reasons provided.

Conclusion:
The Court allowed the writ petition, directing the petitioner to seek condonation of the delay in filing returns within a specified timeframe, emphasizing the importance of considering valid reasons for delays beyond the assessee's control in tax assessment matters.