Bombay High Court stays Best Judgment Assessment Order for Non-Filing of GST Returns to the tune of Rs.25 Cr [Read Order]

Bombay High Court - Judgment Assessment Order - GST Returns - Taxscan

The Bombay High Court stayed the Best Judgment Assessment Order for Non-Filing of GST Returns to the tune of Rs.25 Crores.

The best judgment assessment orders were passed for non-filing of returns assessing turnover of supplies of Rs. 142 crores, which gives rise to the GST demand Rs 25 crores during the period when the hotel was closed in lockdown period.

According to Petitioner, Sahara Hospitality Limited liability should not be more than Rs.10.25 lakhs.  The Petitioner had challenged the order for cancelation on grounds that Petitioner is undergoing financially tough times and cannot make payment requisite for filing returns.

Mr. Gautam Ankhad, counsel for the petitioner submitted that respondents have made assessment for a period during which the lock-down was in force and there was hardly any business activity of the petitioner. Despite this, the petitioner had paid an amount of Rs.10,25,800 which aspect has not at all been considered by the respondents.

Mr.  Ankhad further challenged the cancellation of registration on the ground that it does not indicate or acknowledge payment of GST to the tune of Rs.10,25,800 by the petitioner and the impugned order is devoid of any rational basis for taking such a drastic action.

The division bench of Justice Milind N. Jadhav and Justice Ujjal Bhuyan  stayed the best judgment assessment orders for non filing of returns assessing turnover of supplies of Rs 142 crores i.e. GST demand of Rs. 25 crores during the period when the hotel was closed in lockdown period.

The court has also stayed the order for cancelation of registration and listed the matter on March 16, 2021 for the next hearing.

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