2024 (1) TMI 281 - HC - GST

GST return filing delays can be condoned beyond 30-day limit under Section 62(2) for sufficient cause

Comfort Shoe Components, Rep by its Proprietor Rafeeque Ahmed Versus Assistant Commissioner, Ambur, Vellore.

HC held that while petitioner failed to file GST returns for December 2022, January 2023, and February 2023 within prescribed time limits, resulting in ... Best judgement assessment - returns were not filed by the petitioner within the prescribed time limit - HELD THAT:- In the present case, the returns were not filed by the petitioner for the month of December 2022, January 2023 and February 2023 within the prescribed time limit. Hence, the impugned orders dated 28.03.2023 and 10.04.2023 have been passed by the respondent under Section 62(1) of the GST Act. Thereafter, the returns were filed by the petitioner for the month of December 2022 and January 2023 on 30.04.2023 and for the month of February 2023 on 24.06.2023. In the present case, since the petitioner had not filed the returns for the months of December 2022, January 2023 and February 2023 within the prescribed time limit, the assessment order has been passed by the respondent under Section 62(1) of the GST Act on 28.03.2023 and 10.04.2023. In terms of the provisions of Section 62(2) of the GST Act, if a registered person furnishes the valid returns within a period of 30 days of the service of assessment order under Sub-section (1) of Section 62 of the GST Act, the said assessment order would be deemed to have been withdrawn. However, the liability for the payment of interest of Subsection (1) of Section 50 of the GST Act or for payment of late fee under Section 47 of the GST Act shall continue - The idea of implementation of the said provision is to afford an opportunity to the registered person to furnish and file the returns within a period of 30 days from the date of service of assessment order, which was passed under Section 62(1) of the GST Act. What will be the situation if the petitioner failed to furnish the returns within a period of 30 days as prescribed under Section 62(2) of the GST Act? - HELD THAT:- The limitation of 30 days period prescribed under Section 62(2) of the Act appears to be directory in nature and if the Assessee was not able to file the returns for the reasons, which are beyond his control, certainly the said delay can be condonned and thereafter, the Assessee can be permitted to file the returns after payment of interest, penalty and other charges as applicable. At any cost, the right to file the returns cannot be taken away stating that the petitioner has not filed any returns within a period of 30 days from the date of best judgement assessment order. Thus, if any application is filed before the Authority concerned with sufficient reasons for non-filing of returns within the prescribed time limit as per section 62(2) of the Act, the same shall be considered on merits. If the Authority is satisfied with the said reasons, they can condone the delay and permit the petitioner to file the returns. However, in the present case, no such application was filed by the petitioner. The petitioner is directed to file an application for condoning the delay in filing the returns within a period of 15 days from the date of receipt of copy of this order - Upon filing of the application for condonation of delay, the respondent is directed to consider the said application and pass orders by taking into consideration of the reasons provided by the petitioner for non-filing of returns within a period of 30 days from the service of best judgement assessment order and thereafter, permit the petitioner to file the revised returns. Petition disposed off. Issues involved:The issues involved in this case are related to challenging the best judgement assessment orders passed by the respondent under Section 62(1) of the Goods and Services Tax Act, 2017 for the months of December 2022, January 2023, and February 2023 due to the petitioner's failure to file returns within the prescribed time limit.Summary:The petitioner failed to file returns for the mentioned months within the stipulated time frame, leading to the respondent passing assessment orders under Section 62(1) of the GST Act. The petitioner later filed the returns for December 2022 and January 2023 on 30.04.2023 and for February 2023 on 24.06.2023. The petitioner sought to quash the assessment orders, citing financial difficulties as the reason for the delay.The respondent contended that the petitioner did not file the returns within the specified time limit and argued that the benefit under Section 62(2) of the GST Act is only available if returns are filed within 30 days of receiving the assessment orders.The court examined the provisions of Section 62 of the GST Act, emphasizing that a proper officer may assess the tax liability of a registered person to the best of his judgment if returns are not furnished within the prescribed time frame.Regarding the petitioner's failure to file returns within 30 days as per Section 62(2) of the Act, the court deliberated on whether the petitioner would lose the opportunity to file returns or could still do so by providing valid reasons for the delay.The court highlighted that the 30-day period for filing returns after the assessment order is served is directory in nature and can be condoned if the delay is due to reasons beyond the petitioner's control, subject to payment of applicable charges.The court directed the petitioner to file an application for condonation of delay within 15 days and instructed the respondent to consider the reasons provided by the petitioner before permitting the filing of revised returns.In conclusion, the writ petitions were disposed of with the mentioned directions, and no costs were awarded. The connected miscellaneous petitions were also closed.