GST Assessment based on Wrong Total Turnover: Andhra Pradesh HC Sets aside the Assessment Order [Read Order]

The Andhra Pradesh High Court in a significant case set aside the Goods and Service Tax (GST) assessment made based on the wrong total turnover.

The petitioner challenged the Assessment, Penalty & Interest order passed by 1st respondent under the State Goods and Service Tax (SGST) and Central Goods and Service Tax (CGST) Acts 2017 for the tax periods 2017-18, 2018-19, and 2019-20 as without jurisdiction, without authority, contrary to law and violation of principles of natural justice.

The petitioner engaged in plying passenger buses in different States i.e., Andhra Pradesh, Telangana, Tamilnadu, and Puducherry. The 1st respondent obtained information from M/s Abhibus and wrongly assessed the petitioner to tax in respect of the total turnover of the petitioner relating to all four States. 

As per statute, the 1st respondent must assess the petitioner to tax in respect of the turnover relating to A.P. State only and the turnover relating to other States will be excisable to tax as per the relevant statute of those States. 

The petitioner argued that the Commissioner (ST), Chittoor issued authorization in Form GST INS-01 to the 2nd respondent only for conducting inspection/auditing and not for making the assessment, for which a separate Post Audit / Post Inspection, authorization is required to be issued by the Joint Commissioner (ST). 

Further contended that the 2nd respondent has not passed the Assessment Order but the 1st respondent, who is not the jurisdictional Assessing Authority of the petitioner and who is not the Proper Officer, passed the Assessment Order. 

The petitioner’s grievance is that the respondent obtained total turnover based on which the assessment was made which is wrong.  Neither in the counter nor in the arguments, the respondents have clarified that aspect. 

While allowing the writ petition, the two-judge bench comprising Justice U Durga Prasad Rao and Justice T Mallikarjuna Rao set aside the impugned Assessment Order dated 15.12.2022 passed by 1st respondent under SGST/CGST Acts, 2017 for the tax periods 2017-18, 2018-19 and 2019-20.

Further liberty was given to the petitioner to submit the relevant records showing the turnover relating to his bus business separately for the States of Andhra Pradesh, Telangana, Tamilnadu, and Puducherry for the relevant period before 1st respondent, on the condition of petitioner depositing admitted tax less the tax already deposited within three (3) weeks.

To Read the full text of the Order CLICK HERE

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