GST return filed as per HC order is to be treated as return filed in time; Best judgment assessment order not sustainable

Associate Decor Ltd. Vs ACCT (Karnataka High Court)

Best Judgment Assessment Order withdrawn as Petitioner filed relevant returns in accordance with order of High Court

In Associate Decor Ltd. v. Assistant Commissioner of Commercial Taxes, Bengaluru [Writ Petition No. 45290 of 2019 (T-RES) dated July 02, 2021] Associate Decor Ltd. (Petitioner) has filed the current petition challenging the endorsement No. ACCT LGSTO-150/T.No.51/19-20 dated April 25, 2019 (impugned endorsement) which was issued by Assistant Commissioner of Commercial Taxes (Respondent). Along with that, the Petitioner has also sought for a direction that the Respondent to withdraw all the best judgment assessment orders passed during the period of September 2017 to December 2018.

The Competent Authority had passed best judgment assessment orders under Section 62(1) of the Karnataka Goods and Services Tax Act, 2017 (KGST Act) by raising tax demand on the Petitioner, pursuant to which, current accounts of the Petitioner were attached accordingly. The Hon’ble Karnataka High Court, on a writ petition W.P.No.40360-40364/2018 being filed by the Petitioner ordered the lifting of attachment of current account noting that if the Petitioner was to file its returns in respect of goods, the attachment would be released in favour of him.

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