In a recent ruling, the Madras High Court condoned the delay in filing GSTR-3B by the petitioner, referencing the amendment to Section 62(2) of the Goods and Services Tax ( GST ) Act. Consequently, the court withdrew the assessment order issued under Section 62(1).
The petitioner, Helmet House initially filed the GSTR-1 return on 25th March 2023, after receiving a notice in GSTR-3A on the same date. Although the petitioner disputed the difference in supply in GSTR-1, they failed to submit GSTR-3B on time. As a result, an assessment order was issued under Section 62(1) of the Tamil Nadu Goods and Services Tax ( TNGST ) Act, 2017, on 22nd May 2023, based on the returns filed in GSTR-1.
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Subsequently, the petitioner filed the GSTR-3B return on 2nd July 2023. According to Section 62 of the GST enactments, if a return is filed within 30 days, the assessment order under Section 62 is deemed withdrawn. However, the petitioner remains liable for interest under Section 50(1) and late fees under Section 47.
The petitioner’s counsel argued that the time period for filing GSTR-3B had been extended to 60 days effective from 1st October 2023, as per Finance Act No. 8/2023, dated 31st March 2023, and Notification No. 28/2023-Central Tax, dated 31st July 2023.
In contrast, the respondent’s Government Advocate contended that the amendment was not in effect during the disputed period and that the petitioner had forfeited their rights by not filing an appeal in time. The advocate cited the Supreme Court’s decision in Singh Enterprises v. Commissioner of Central Excise, Jamshedpur & Others (2008) 3 SCC 70, arguing for the dismissal of the writ petition.
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The bench of Justice Krishnan Ramasamy decided that the delay in filing GSTR-3B on 2nd July 2023 should be condoned due to the amendment to Section 62(2) of the CGST Act, 2017, which has been incorporated into the TNGST Act, 2017. Consequently, the assessment order issued on 22nd May 2023 under Section 62(1) is deemed withdrawn.
Satheesh Murugan for Mr.K.S.Prakash and J.K.Jayaselan Government Advocate appeared for the assessee and respondents respectively.
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