Aaron Construction Co. Vs Union Of India (Kerala High Court)
The Kerala High Court recently delivered a significant judgment in the case of Aaron Construction Co. vs Union of India, concerning the application of best judgment assessment under the CGST/SGST Act. This case arose from the appellant’s challenge against an assessment order (Ext.P4) issued due to non-filing of returns.
The appellant, a registered dealer under the Act, failed to submit returns for over six months. Consequently, the assessing authority initiated cancellation proceedings against its registration and completed an assessment on a best judgment basis under Section 62 of the Act. Despite receiving the assessment order, the appellant did not file returns within the stipulated period, which could have nullified the assessment.
During the proceedings, the appellant argued that the assessing authority had not issued a formal notice before passing the best judgment assessment order, as mandated by Section 62(1) of the Act. However, the court observed that while the notice requirement wasn’t met, the appellant’s failure to file returns within the specified timeframe (Section 62(2)) was detrimental to its case.
The court emphasized that the appellant, being aware of the assessment order, did not take corrective action within the allowed period, thereby demonstrating non-cooperation in the assessment process. The judgment highlighted the statutory provision’s intent to encourage timely compliance by assessees and affirmed the lower court’s decision to dismiss the writ petition challenging the assessment order.
