2025 (4) TMI 163 - HC - GST

GST returns can be filed beyond 60-day limit if delay justified by circumstances beyond assessee's control

Tvl. Uthapuram Kanmoi Pasana Vivasaigal Sangam Rep. by its Proprietor P. Sonaimuthu Versus The Commissioner of Commercial Taxes, The Assistant Commisioner, The Assistant Commissioner (Circle), Madurai

Madras HC held that the 60-day limitation under Section 62(2) of GST Act for filing returns is directory, not mandatory. The court ruled that delay can be ... Time limitation for filing returns - failure to furnish the returns within a period of 60 days as prescribed under Section 62(2) of the GST Act - Whether the petitioner will lose his opportunity to file the returns or the petitioner will still be entitled to file the returns by providing sufficient reasons for non-filing of returns, whereby enabling the second respondent to condone the delay and accept the returns of the petitioner? - HELD THAT:- The limitation of 60 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/her control, certainly the said delay can be condoned 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 60 days from the date of best judgment 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. Conclusion - The limitation of 60 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/her control, certainly the said delay can be condoned. 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 - petition disposed off. ISSUES PRESENTED and CONSIDEREDThe core legal questions considered in this judgment include:Whether the petitioner can be allowed to file returns beyond the 60-day period specified under Section 62(2) of the GST Act due to circumstances beyond their control, such as ill-health.Whether the assessment order made under Section 62(1) of the GST Act can be quashed if the petitioner subsequently files the returns along with interest and late fees.Whether the petitioner is entitled to have the delay in filing returns condoned and the assessment order deemed withdrawn, despite not meeting the 60-day deadline.What procedural steps should be taken if the petitioner seeks to condone the delay in filing returnsRs.ISSUE-WISE DETAILED ANALYSISRelevant legal framework and precedents: The case revolves around Section 62 of the GST Act, which deals with the assessment of non-filers of returns. Subsection (1) allows the tax authority to assess the tax liability to the best of its judgment if returns are not filed after a notice is served. Subsection (2) provides that if returns are filed within 60 days of the assessment order, the order is deemed withdrawn, although interest and late fees remain payable.Court's interpretation and reasoning: The Court interpreted Section 62(2) as being directory rather than mandatory. This interpretation allows for flexibility in cases where the taxpayer provides sufficient reasons for the delay, such as ill-health. The Court emphasized that the right to file returns should not be curtailed if circumstances beyond the taxpayer's control prevented timely filing.Key evidence and findings: The petitioner failed to file the returns within the prescribed period due to ill-health and subsequently filed them along with the required interest and late fees. The second respondent insisted on the payment of the assessed tax amount, as the returns were not filed within the 60-day window.Application of law to facts: The Court applied Section 62 of the GST Act to the facts, noting that while the petitioner missed the 60-day deadline, the reasons provided (ill-health) could justify condoning the delay. The Court highlighted that the statutory framework allows for the assessment order to be withdrawn if returns are filed within 60 days, but it did not preclude the possibility of condoning delays due to valid reasons.Treatment of competing arguments: The petitioner's counsel argued for the condonation of the delay due to ill-health, while the Government Advocate maintained that the 60-day period was a strict deadline. The Court balanced these arguments by suggesting a procedural remedy that allows for the consideration of the petitioner's circumstances.Conclusions: The Court concluded that the 60-day period in Section 62(2) is directory, allowing for the condonation of delays if valid reasons are provided. The petitioner was directed to file an application for condonation of delay, which the second respondent should consider on its merits.SIGNIFICANT HOLDINGSPreserve verbatim quotes of crucial legal reasoning: 'The limitation of 60 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/her control, certainly the said delay can be condoned.'Core principles established: The judgment establishes that the 60-day period for filing returns under Section 62(2) is not an absolute bar and can be extended if sufficient reasons are provided. This interpretation supports the principle of fairness and ensures that taxpayers are not unduly penalized for circumstances beyond their control.Final determinations on each issue: The Court directed the petitioner to file an application for condonation of delay within 15 days. The second respondent is to consider this application, taking into account the reasons for the delay, and permit the petitioner to file revised returns if the reasons are deemed satisfactory.