2020 (12) TMI 58 - HC - GST

Validity of assessment order - Best Judgement Assessment - recovery of amounts covered by two sets of assessment orders for the assessment years in question - Section 74 of the CGST Act - HELD THAT - Exts.P5 to P18 orders are best judgment assessment orders passed in terms of Section 62 of the GST Act for various months between April 2018 to May 2019, taking note of the non-filing of returns by the assessee. Exts.P19 to P32 are the summary of the orders passed as above. It is not in dispute that pursuant to the said assessment orders completed on best judgment basis there has been no payment effected by the petitioners, and it was therefore that proceedings under Section 74 were initiated and completed through the passing of Exts.P2 to P4 assessment orders - Under such circumstances, there cannot be any doubt that Exts.P2 to P4 orders passed under Section 74 of the GST Act are the assessment orders that will govern the assessment of the petitioners under the Act for the assessment years covered by them. Writ Petition is disposed off by dismissing the challenge against Exts.P2 to P4 assessment orders and relegating the petitioners to their alternate remedy of filing statutory appeals against the said assessment orders before the first appellate authority.

Summary

Issues:
Challenge to assessment orders passed under Section 74 of the CGST Act, clarification sought on course of action post assessment orders, validity of best judgment assessment orders, effect of subsequent assessment orders on previous orders.

Analysis:
The petitioners challenged assessment orders (Exts.P2 to P4) under Section 74 of the CGST Act, contending they were previously subjected to best judgment assessments as per Exts.P5 to P18, with summaries provided in Exts.P19 to P32. Concerned about potential recovery actions based on both sets of orders, they sought clarification on the appropriate course of action.

Upon hearing arguments from both parties, the Court noted that Exts.P5 to P18 were best judgment assessment orders under Section 62 of the GST Act for various months due to non-filing of returns. As no payments were made following these orders, proceedings under Section 74 led to the issuance of Exts.P2 to P4 assessment orders. The Court clarified that Exts.P2 to P4, being passed under Section 74, would govern the assessment for the relevant years, rendering Exts.P5 to P18 and Exts.P19 to P32 irrelevant. Consequently, the challenge against Exts.P2 to P4 was dismissed, directing the petitioners to pursue statutory appeals against these orders before the first appellate authority.

In conclusion, the Court upheld the validity of the assessment orders under Section 74, emphasizing their authority over previous best judgment assessments. The petitioners were advised to address any grievances through the statutory appeal process, while confirming that the earlier assessment orders no longer held significance post the issuance of Exts.P2 to P4.