Court dismisses Writ Petition challenging GST demand notices for late return filing; emphasizes timely compliance

The court dismissed the Writ Petition challenging demand cum recovery notices under the GST Act as the petitioner failed to file returns within the required timeframe for withdrawal of assessment orders. The court held that communication of assessment orders via the web portal constituted effective service, and the petitioner's belated filing of returns did not entitle them to withdrawal benefits. A temporary stay on recovery proceedings for six weeks was granted to facilitate the petitioner's appeal process against the assessment orders. Compliance with statutory provisions for timely actions was emphasized in upholding the validity of the notices.

---

---

Issues:
Challenge to demand cum recovery notices under the GST Act based on assessment orders not served on the petitioner, timely filing of returns for withdrawal of assessment orders, effective communication of assessment orders via web portal, benefit of withdrawal under Section 62 of the GST Act, belated filing of returns, dismissal of Writ Petition, recovery proceedings, stay on recovery for appeals.

Analysis:
The petitioner challenged the demand cum recovery notices issued under the GST Act, contending that the assessment orders were not served on him. The assessment orders were passed in November 2019 for the period April 2018 to May 2019. The petitioner claimed to have filed returns promptly upon receiving the demand notices to avail the benefit of withdrawal of assessment orders as per Section 62 of the GST Act.

The respondents clarified that the assessment orders were uploaded on the department's web portal on the same dates they were passed. Section 62 of the GST Act allowed the assessee to file returns within 30 days from the date of receipt of orders passed on best judgment basis to withdraw the orders. However, the petitioner failed to file returns within 30 days from the date of uploading the assessment orders on the web portal but filed them within 30 days from the receipt of demand notices following the assessment orders.

The court considered the provisions of Section 169(c) and (d) of the GST Act, which deem communication to the e-mail address provided by the assessee at the time of registration and making it available on the common portal as effective communication. The court noted that the petitioner was aware of the assessment orders on the dates they were uploaded. Since the returns were filed more than 30 days after the service of orders via the web portal, the petitioner was not entitled to the benefit of withdrawal under Section 62 of the GST Act. Consequently, the Writ Petition challenging the assessment orders and demand notices was dismissed.

Acknowledging the petitioner's intention to appeal against the assessment orders, the court directed a stay on recovery proceedings for six weeks. This stay aimed to allow the petitioner time to move the appellate authority through statutory appeals during the interim period.

In conclusion, the court upheld the validity of the demand cum recovery notices under the GST Act, emphasizing the importance of timely compliance with statutory provisions for withdrawal of assessment orders. The petitioner's failure to file returns within the stipulated period led to the dismissal of the Writ Petition, with a temporary stay granted for pursuing appeals against the assessment orders.

---