Xestion Advisor Private Limited Vs Additional Commissioner Grade II and Another (Allahabad High Court)
Allahabad High Court has invalidated a Goods and Services Tax (GST) assessment order and a subsequent appellate order, citing a critical procedural flaw: the failure to issue a mandatory notice under Section 46 of the GST Act before proceeding with a best judgment assessment under Section 62. The ruling, in the case of M/s Xestion Advisor Private Limited versus Additional Commissioner Grade II and Another, underscores the necessity of adhering to prescribed statutory procedures and upholding principles of natural justice in tax administration.
The petitioner, a company providing management consultancy services, challenged an assessment order dated September 21, 2020, which determined a tax liability for non-compliance in filing Form GSTR-3B. This order was issued under Section 62 of the GST Act, which allows a proper officer to assess the tax liability of a registered person who fails to furnish a return despite a notice under Section 46.
However, the court record revealed a critical timeline discrepancy: the notice under Section 46 was uploaded on the GST portal on September 25, 2020, four days after the assessment order had already been passed. The petitioner argued that this sequence deprived them of the opportunity to file the return within the 15-day period stipulated in the Section 46 notice, rendering the assessment order a violation of mandatory procedural requirements and principles of natural justice.
