Azad Enterprises Vs State of Bihar (Patna High Court)
Summary: The Patna High Court considered a writ petition filed by Azad Enterprises challenging the order dated 25.11.2023 passed by the Adjudicating Authority under Section 73(9) of the GST Act and the notice dated 28.03.2025 seeking attachment of the petitioner’s bank account. The dispute concerned the assessment of tax liability for the financial year 2022-23.
The petitioner submitted that it had regularly filed its monthly and quarterly returns. According to the petitioner, the due date for filing the annual return for FY 2022-23 was 31.12.2023. However, the Proper Officer had passed the assessment order under Section 73(9) on 25.11.2023, before expiry of the due date for filing the annual return. The petitioner subsequently filed its annual return on 20.01.2024 and submitted that it could be liable for the applicable late fee, but contended that the assessment order had been passed prematurely.
The State, through learned counsel, accepted that the assessment order had been passed before the due date for filing the petitioner’s annual return.
The Court examined the timing of the assessment and held that, since the due date for filing the annual return was 31.12.2023, the Proper Officer had no authority to assess the petitioner’s tax liability under Section 73(9) before expiry of that date. The Court accordingly set aside the order dated 25.11.2023 imposing tax liability upon the petitioner. :contentReference[oaicite:0]{index=0}
The Court remanded the matter to the Proper Officer to initiate a fresh proceeding for assessment of tax of the petitioner for FY 2022-23. The fresh proceeding is to be undertaken after giving the petitioner proper notice and an opportunity of hearing. The Competent Authority was directed to complete the entire exercise within three months in accordance with law.
The petitioner was also directed to appear before the Proper Officer/Adjudicating Officer within two weeks without waiting for a notice to be issued. The writ petition was therefore disposed of with the assessment order being set aside and the matter being remanded for fresh proceedings. The supplied judgment does not record a final determination of the petitioner’s underlying tax liability for FY 2022-23.
TaxGuru’s material on Section 73 GST proceedings explains the statutory framework governing determination of tax under Section 73, including the relationship between the prescribed timelines and the due date for furnishing the annual return. The present decision, however, turns specifically on the Court’s finding that the Proper Officer acted before expiry of the annual-return filing date for FY 2022-23.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
Heard learned counsel for the parties.
2. The present writ application has been filed for setting aside the order dated 25.11.2023, passed by the Adjudicating Authority, under Section 73(9) of the GST Act. The petitioner has further prayed for quashing of the notice dated 28.03.2025 for attachment of the bank account of the petitioner.
3. Learned senior counsel for the petitioner submits that petitioner filed the monthly as well as quarterly return
Patna High Court CWJC No.14211 of 2025(4) dt.06-08-2026 2/3 regularly within time period for filing annual return under Section 73 under DRC – 7 was 31.12.2023, but Proper Officer prior to the last date of filing return by the petitioner has passed the assessment order on 25.11.2023. He further submits that however after assessment order the petitioner has filed its annual return on 20.01.2024, for which the petitioner may be held liable to pay late fee.
4. Learned counsel for the State submits that it is true that the assessment order has been passed by the Assessing Authority prior to due date for filing annual return by the petitioner.
5. Considering the fact that the due date for filing annual return was 31.12.2023, but the order of Adjudicating Officer, assessing the tax liability upon the petitioner is prior to the last date of filing annual return i.e. on 25.11.2023. The Proper Officer had no authority to assess tax liability upon the petitioner, under Section 73(9) prior to expiry of due date of filing return for the financial year 2022-2023.
6. In the result, the order passed by the Proper Officer imposing tax liability upon the petitioner dated 25.11.2023 is set aside. The matter is remanded back to the Proper Officer for initiate a fresh proceeding for assessment of tax of
Patna High Court CWJC No.14211 of 2025(4) dt.06-08-2026 3/3 the petitioner for the financial year 2022-2023, after giving proper notice and opportunity of hearing to the petitioner. The entire exercise shall be completed by the Competent Authority within a period of three months in accordance with law.
7. The petitioner is directed to appear before the Proper Officer/Adjudicating Officer within a period of two weeks without waiting for the notice having been issued by him.
