2025 (2) TMI 63 - HC - GST

Rejection of rectification application - petitioner s specific contention is that there can be no computation of 40% of the actual turnover since his gross turnover within the State of Bihar has been specifically shown in the annual return - HELD THAT - It is found that no statutory sanction for an assessment made of the 40% of the total turnover which is taken as the taxable transaction within the State of Bihar. In that circumstance we find absolutely no reason to sustain the order dated 20.08.2024 itself. On the above finding the order of assessment (Annexure P/6) and order of rectification (Annexure- P/10) set aside. The petitioner is directed to appear before the Assessing Officer with all substantiating documents on 20th of December 2024. The Assessing Officer on the same date or on an adjourned date the acknowledgment of which will be taken from the assessee or the authorized representative who appears on the 20th of December 2024 afford opportunity for hearing and finalize the assessment. Petition disposed off.

Summary

**Summary of the Patna High Court Judgment:**The Patna High Court addressed the petitioner's grievance regarding an order (Annexure P-10) rejecting their rectification application related to the assessment for the Assessment Year 2019-20. The petitioner, operating across 19 states, argued that the Assessing Officer erroneously included the entire turnover, including transactions outside Bihar, in the assessment, attributing 40% of the total turnover to Bihar.The Government Advocate contended that the petitioner failed to provide necessary documents, such as GSTR-9, GSTIN, Debit Notes, Trial Balance, or Books of Account for states other than Bihar, which were essential for rectification. These documents were only submitted after the order under Section 73(10) of the Bihar Goods and Services Tax Act, 2017, was passed.The Court found no statutory basis for assessing 40% of the total turnover as taxable in Bihar. Consequently, the Court set aside both the assessment order dated 20.08.2024 (Annexure P/6) and the rectification order (Annexure P/10). The petitioner was directed to present all relevant documents to the Assessing Officer on December 20, 2024, for a hearing and reassessment. The writ petition was thus disposed of.