Gopi Krishna Traders Vs Assistant Commissioner State Taxes (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court disposed of the writ petition filed by M/s. Gopi Krishna Traders concerning a best judgment assessment order dated 16.02.2022 passed under Section 62 of the GST Act for December 2021. The petitioner was a registered person carrying on business as a trading unit but had not filed its GSTR-3B return for December 2021. The first respondent issued notice under Section 46 and, when the petitioner did not respond, passed the assessment order by exercising power under Section 62.
The petitioner stated that it could not file the GSTR-3B return because its registration was cancelled by order dated 20.02.2022 with effect from 28.02.2022. As the business had been closed, the petitioner did not intend to challenge the cancellation of registration. Its counsel requested a direction permitting the GSTR-3B return for December 2021 to be accepted manually and sought dropping of further proceedings pursuant to the assessment order dated 16.02.2022. The petitioner expressed readiness to pay the late fee and additional fee prescribed under Section 62(2). The Assistant Government Pleader reported no objection to manual receipt of the return provided the petitioner paid the prescribed fee.
The High Court referred to the statutory mechanism under Section 62. It noted that where a registered person fails to furnish the prescribed return, the proper officer may assess the tax liability to the best of his judgment after considering relevant material and issue an assessment order within the statutory period. The Court further noted that under Section 62(2), where a registered person furnishes a valid return within the stipulated period after service of the assessment order, the assessment order is deemed to have been withdrawn, while liability for interest under Section 50(1) and late fee under Section 47 continues.
Considering the peculiar facts and the petitioner’s decision not to continue its business, the High Court directed the respondents to accept manually the petitioner’s GSTR-3B return for December 2021 within four weeks from receipt of the order. The petitioner was required to pay the late fee and additional late fee as per Section 62(2). The Court expressly directed that upon filing the return along with the requisite fee, the assessment order dated 16.02.2022 would be deemed to have been withdrawn. The writ petition was accordingly disposed of without costs and miscellaneous petitions, if any, were closed.
FULL TEXT OF THE ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner was a registered person under provisions of the Goods and Service Tax Act, 2017 on the rolls of 1st respondent. The petitioner had registered as a trading unit and started business.
2. The petitioner did not file GSTR-3B return for the month of December 2021. The 1st respondent issued notice under Section 46 of the GST Act and despite the same, the petitioner did not turn up. In those circumstances, the 1st respondent has passed assessment order dated 16.02.2022 by exercising power under Section 62 of the said Act.
3. It is the case of the petitioner that it could not file GSTR-3B returns, as the registration of the petitioner was cancelled by order dated 20.02.2022, with effect from 28.02.2022. It was further contended that in view of closure of the business, the petitioner is not intending to question the order of cancellation of its registration.
4. The counsel for the petitioner would further submit that, the 1st respondent may be directed to accept GSTR-3B returns manually, in view of the peculiar circumstances of the case, and to drop all further proceedings pursuant to order of assessment dated 16.02.2022. He would further submit that the petitioner is ready to pay late fee and additional fee as prescribed under Section 62 (2) of GST Act.
5. On the other hand, the Assistant Government Pleader appearing for the respondents reports no objection to receive GSTR-3B returns manually, for the month of December 2021, provided the petitioner pays the prescribed fee under the Act.
6. As per Section 62 of GST Act the Proper Officer may proceed to assess the tax liability of the registered person to the best of his judgment taking into account all the relevant material, which is available or which he has gathered and issue an Assessment Order, within a period of five (05) years from the date specified under Section 44 for furnishing of annual return for the financial year to which the tax not paid relates to.
7. Further as per Section 62(2), if the registered person furnishes valid return within sixty (60) days of service of Assessment Order under sub section (1), the said Assessment Order shall be deemed to have been withdrawn, but the liability for payment of interest under sub section (1) of section 50 or for payment of late fee under section 47 shall continue.
8. In the case on hand, as the petitioner is not intending to continue its business, taking into consideration of the peculiar facts and circumstances of the case, we deem it appropriate to dispose of the writ petition with a direction to the respondents to accept GSTR-3B returns manually in relation to the month of December 2021, from the petitioner within a period of four (04) weeks, from the date of receipt of copy. It is needless to mention the petitioner shall pay the late fee and additional late fee as per Section 62 (2) of the GST Act. Further, upon filing such return along with requisite fee, the Assessment Order dated 16.02.2022 would be deemed to have been withdrawn.
9. Accordingly, the writ petition is disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, shall stand closed.
