Tvl. Solutions Online Vs Assistant Commissioner (ST) (Madras High Court)
In a series of writ petitions, the Madras High Court has addressed the issue of belated filing of Goods and Services Tax (GST) returns subsequent to best judgment assessment orders issued under Section 62 of the GST Act, 2017. The court, drawing upon its own precedent, has ruled in favor of the petitioners, allowing them to file their returns despite exceeding the 30-day window stipulated by the law.
The petitions, filed by Tvl. Solutions Online, challenged assessment orders issued by the Assistant Commissioner (ST) for the months of October, November, and December 2023, and January 2024. These orders were passed because the petitioner had failed to file their GSTR-1 and GSTR-3B returns within the prescribed time.
Background of the Case
According to the petitioner’s counsel, the assessment orders were issued under Section 62(1) of the GST Act. This section permits a proper officer to assess a taxpayer’s liability based on their “best judgment” if they fail to furnish returns even after receiving a notice. Section 62(2) provides a recourse: if a registered person files a valid return within 30 days of the best judgment assessment order being served, the assessment order is deemed to be withdrawn. However, the liability for interest and late fees continues.
