Tax Dealer Loses Appeal: Non-Compliance with Return Filing Leads to Best Judgment Assessment Upheld Under Rule

The SC upheld the best judgment assessment order against a registered dealer who failed to file returns for over six months. Despite challenging the order's procedural validity, the appellant's non-compliance and failure to file returns within the statutory 30-day period rendered the challenge ineffective. The court dismissed the writ appeal, emphasizing the importance of statutory compliance and cooperation in tax assessment proceedings.

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Issues Involved:
1. Challenge against best judgment assessment order under Section 62 of the CGST/SGST Act.
2. Compliance with notice requirement prior to passing the order on best judgment basis.
3. Non-filing of returns by the appellant.
4. Appellant's awareness of statutory requirements.
5. Appellant's opportunity to nullify the assessment order.
6. Appellant's failure to cooperate in assessment proceedings.

Analysis:

1. The appellant challenged the best judgment assessment order under Section 62 of the CGST/SGST Act. The appellant, a registered dealer, failed to submit returns for over six months, leading to steps for cancellation of registration and completion of assessment on best judgment basis. The appellant did not avail the opportunity to file a return within thirty days of receiving the assessment order, which could have resulted in automatic cancellation of the assessment order.

2. The appellant contended that the respondents did not comply with the requirement of issuing a notice before passing the best judgment assessment order under Section 62(1) of the Act. The appellant, being a new venture, claimed unawareness of filing returns and consequences of non-compliance.

3. The non-filing of returns by the appellant, even after receiving the assessment order, was highlighted as fatal to the case. The failure to file returns within thirty days of receiving the order was deemed detrimental to the appellant's position. The court noted that the appellant had the opportunity to nullify the assessment order by filing returns but failed to do so.

4. The court emphasized that while the formal notice requirement under Section 62(1) was not met, the appellant's failure to take positive steps, such as filing returns, indicated non-cooperation in the assessment proceedings. The appellant's lack of action within the specified timeframe was seen as a self-inflicted predicament.

5. Ultimately, the court dismissed the writ appeal, stating that the appellant had only itself to blame for the situation due to the failure to utilize the opportunities provided by statutory provisions. The judgment of the learned Single Judge was upheld, emphasizing the importance of compliance and cooperation in assessment processes.

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