LEGAL TERMINOLOGY IN GST LAW (PART -6)

[Dr. Sanjiv Agarwal]

The Central Goods and Services Tax Act, 2017 (CGST Act) as amended upto March, 2024 contains 124 definitions, the Integrated Goods and Services Tax Act, 2017 (IGST Act) contains 24 definitions and the Union Territories Goods and Services Tax Act, 2017 (UTGST Act) contains 9 definitions of various terms which find place in statutory provisions of GST.

In this ongoing series, author makes an attempt to cover meaning, scope and interpretation of these definitions which forms important and integral part of the legal framework of levy and collection of Goods and Services Tax (GST) in India. Various terms and expressions will be covered in different parts of this series.

Assessment [Section 2(11)]

As per section 2(11) of the CGST Act, 2017 ‘assessment’ means determination of tax liability under GST law and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment.

Thus, the definition of ‘assessment’ in CGST Act, besides providing the meaning of the term assessment as determination of tax liability under the CGST Act, also provides various ways of assessment by which tax liability can be determined.

According to GST Law, assessments are covered under Chapter XII of the Act which provides for –

●     Self-assessment (Section 59)

●     Provisional assessment (Section 60)

●     Summary assessment (Section 64)

●     Best judgment assessment (Section 63)

●     Re-assessment (Section 61)

Such assessments are subject to adjudication procedure which involves observance of principles of natural justice. The person who is assessed is called assessee (i.e. taxable person) and the person who assesses is called adjudicating authority.

In SHABINA ABRAHAM AND OTHERS VERSUS COLLECTOR OF CENTRAL EXCISE & CUSTOMS - 2015 (7) TMI 1036 - SUPREME COURT, it has been held by Supreme Court that the assessment proceedings cannot continue against the legal representative/estate of a sole proprietor or manufacturer after he is dead in the absence of any machinery provision under the law. The taxation statute must be interpreted in light of what is clearly expressed. It cannot imply anything which is not expressed. It cannot import provisions in the statute so as to supply any assumed deficiencies. The case pertains to period 1983 to 1985.

In M SUGANTHI, THIRUMURTHY BUS TRANSPORT AND K MAHALINGAM VERSUS ASSTT COMMISSIONER OF CENTRAL EXCISE, POLLACHI - 2011 (4) TMI 11 - MADRAS HIGH COURT, it was held that Department who is exercising power under the fiscal statute while passing order and bringing someone under tax net, is required to render specific finding as to liability and demand cannot be on surmise and conjecture.

Assessment is the official determination of liability of a person to pay a particular tax. FIRM L. HAZARI MAL KUTHIALA VERSUS INCOME-TAX OFFICER - 1956 (9) TMI 63 - PUNJAB & HARYANA HIGH COURT [Income-tax Act  (11 of 1922), S. 23]

The word assessment is used in a comprehensive sense and includes all proceedings, starting with the filing of the return or issue of notice and ending with the determination of the

tax payable by assessee. S SANKAPPA AND OTHERS VERSUS INCOME-TAX OFFICER, CENTRAL CIRCLE II, BANGALORE - 1967 (12) TMI 2 - SUPREME COURT. [Income-tax Act (11 of 1922), S. 35(1) & (5)].

The term 'assessment' not only includes assessment but also includes determination, levy and also recovery of tax so far as the assessee is concerned. [MRS. PADMA KHASTGIR, J.] MAINA DEBI GOENKA VERSUS UNION OF INDIA AND OTHERS (AND OTHER WRIT PETITIONS) - 1978 (2) TMI 70 - CALCUTTA HIGH COURT [Indian Income-tax Act (II of 1922), S. 67].

The word 'assessment' can comprehend the whole procedure for ascertaining and imposing liability upon the tax-payer. KALAWATI DEVI HARLALKA VERSUS COMMISSIONER OF INCOME-TAX, WEST BENGAL AND OTHERS - 1967 (5) TMI 2 - SUPREME COURT. [Income-tax Act (43 of 1961), S. 297 (2)(a)].

The expression 'assessment' is used as meaning sometimes, the computation of income, sometimes 'the determination of the amount of tax payable' and sometimes, the whole procedure laid down in the Act for imposing liability upon the taxpayer. The intimation under Section 143(1)(a) cannot be treated to be an order of 'assessment'. [ASSISTANT COMMISSIONER OF INCOME-TAX VERSUS RAJESH JHAVERI STOCK BROKERS P. LIMITED - 2007 (5) TMI 197 - SUPREME COURT] [Income-tax Act (43 of 1961), S. 143(1)].