Belated GSTR-3B Cannot Revive Expired GST Appellate Remedy: Rajasthan HC

Ashok Varandani Vs Central Board of Indirect Taxes And Customs (Rajasthan High Court)

Summary: Rajasthan High Court dismissed the writ petition challenging an ex-parte best judgment assessment dated 15.05.2023 after finding that the petitioner had failed to avail the statutory appellate remedy within the prescribed or extended limitation period. The petitioner had not filed Form GSTR-3B for March 2023 due to stated financial constraints despite receiving notice under Section 46 of the RGST Act, 2017 requiring filing within 15 days. Consequently, the Assessing Authority proceeded with best judgment assessment under Section 62. The petitioner subsequently filed the March 2023 return on 04.10.2023 and believed that filing the belated return would result in withdrawal of the best judgment assessment. Acting under that impression, he did not file an appeal and approached the High Court only after recovery proceedings and attachment of his bank accounts.

The Court observed that the petitioner had defaulted at every stage: he failed to file the original return, failed to comply with the statutory notice, and thereafter allowed both the ordinary and extended appellate limitation periods to expire despite being aware of the assessment order. Relying upon Assistant Commissioner (CT) LTU, Kakinada & Ors. vs. Glaxo Smith Kline Consumer Health Care Limited, the Court held that a writ petition cannot ordinarily be used to challenge an assessment after the statutory appellate remedy has become foreclosed by limitation. The Supreme Court had held that statutory limitation cannot be disregarded through Article 226 in a manner inconsistent with legislative intent. The High Court further held that there was no violation of natural justice because notice requiring the petitioner to file his return within 15 days had been issued before the best judgment assessment.