Non-Filing of GST Returns even after Receipt of Assessment order passed u/s 62 is Fatal: Kerala HC [Read Order]

The Kerala High Court has held that the non-filing of returns even after receipt of the assessment order passed under Section 62 of the Central Goods and Service Tax ( CGST ), 2017 is fatal for the assessee.

The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that it may be true that the respondents did not issue a formal notice as required under Section 62(1) of the Income Tax Act before completing the assessment on a best judgment basis under the said provision, but the fact remains that the appellant could have obtained a nullification of said assessment order if he had filed the return at least within thirty days of the receipt of the assessment order.

Aaron Construction Co, the appellant/assessee challenged the best judgment assessment order passed by the assessing authority under Section 62 of the CGST/SGST Act. The assessee, who was obliged to file returns under the Act in its capacity as a registered dealer, failed to submit returns for more than six months. Therefore, steps were taken by the assessing authority to cancel its registration under the Act. Simultaneously, the assessment on the best judgment basis under Section 62 was also completed, taking note of the fact that the appellant had not filed any return as provided under the section.

The single judge noted that even after receipt of the assessment order under Section 62, the appellant did not avail herself of the opportunity to file a return as provided under Section 62(2), which, if filed, could have resulted in an automatic cancellation of the assessment order passed on a best judgment basis. The single judge before whom the writ petition came up for hearing proceeded to dismiss the writ petition in its challenge against the assessment order.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates