2025 (9) TMI 797 - HC - GST

Statutory returns held filed within prescribed period; assessment orders quashed, petitioner must pay interest demand within one month

Ms. Vision Academy Versus State Tax Officer and Deputy Commissioner (Arrear Recovery)

The HC held the petitioner had submitted statutory returns within the prescribed period despite earlier issuance but later uploading of assessment orders, ... Submission of returns within the statutory period contemplated u/s 62 - withdrawal of assessment made as per Exst.P2 to P10 - HELD THAT:- It is an undisputed fact that, even though Form GST ASMT-13 was passed earlier, the same was uploaded only later. In the meantime, i.e., before the orders were uploaded, the returns were already submitted by the petitioner. Therefore, it is evident from the details furnished in the tabulation form as referred to above, which is not disputed by the respondent also, the petitioner submitted the returns within the statutory period and hence, reliefs sought by the petitioner have to be allowed. This writ petition is disposed of, quashing Exts. P2 to P10 and Exts. P2(a) to P10(a), with a directions to the 1st respondent to issue a demand notice pertaining to the interest payable by the petitioner in respect of amount referred to in the returns submitted by the petitioner. Upon issuance of the said demand notice, the said amount shall be paid by the petitioner within a period of one month from the date of receipt of copy of this judgment. ISSUES PRESENTED AND CONSIDERED 1. Whether assessments recorded by issuance of Forms GST ASMT-13 and GST DRC-07 (Exts. P2-P10 and P2(a)-P10(a)) are maintainable where the taxpayer filed returns after the date of passing those Forms but before those Forms were uploaded to the web portal, for purposes of the time-limit in Section 62. 2. Whether the alleged tax liability arising from the returns filed by the taxpayer attracts interest, notwithstanding the quashing of the impugned assessment/orders on the ground of returns having been filed within the statutory period as reckoned by the Court. ISSUE-WISE DETAILED ANALYSIS Issue 1: Validity of assessments (Forms GST ASMT-13 and GST DRC-07) where returns were filed between issuance and upload of notices - Legal framework Legal framework: Section 62 governs assessment/issuance of notices where returns are not filed and prescribes the statutory period and consequences for non-filing. The assessment process under the CGST/KGST regime contemplates issuance of notice(s) and an effective date from which the statutory time limits run, with the web portal serving as the official medium for issuing/uploading statutory forms and notices. Precedent Treatment No precedent was cited or applied by the Court in the judgment. The Court proceeded on statutory text and the uncontested facts regarding dates of issuance, dates of upload, and dates of filing of returns. Interpretation and reasoning The Court analyzed the actual dates in three relevant categories: (a) the dates on which Forms GST ASMT-13 were passed by the authority, (b) the dates on which those Forms and the subsequent GST DRC-07 notices were uploaded to the web portal, and (c) the dates on which the taxpayer filed the returns. The Court accepted as indisputed that although some Forms ASMT-13 were passed earlier, they were uploaded only later; the taxpayer filed returns after the passing of the Forms but before their uploading. The Court treated the uploading to the web portal as the operative act for reckoning the statutory timeline under Section 62 and held that if returns were filed within the statutory period measured from the date of uploading, the issuance of the assessments/orders could not be sustained. Ratio vs. Obiter Ratio: Where statutory notices/forms under the GST regime are not uploaded to the official web portal before the taxpayer files the returns, the statutory period for invoking Section 62 must be reckoned with reference to the operative act (uploading), and assessments premised on non-filing are unsustainable if returns were filed within that operative period. Obiter: The judgment does not elaborate on alternative modes of communication or on hypothetical variations in facts (e.g., cases where upload precedes filing), so any statements touching on general principles of notification beyond the facts are ancillary and not necessary for the decision. Conclusion on Issue 1 The Court quashed Exts. P2-P10 and P2(a)-P10(a) (Forms GST ASMT-13 and GST DRC-07) because, on the uncontested dates, the taxpayer had furnished returns within the statutory period when that period is properly reckoned from the date of uploading to the web portal; consequently the assessments could not be maintained. Issue 2: Liability for interest despite quashing of assessments - Legal framework Legal framework: The CGST/KGST regime provides for interest on tax liabilities where returns show tax due; interest is collectible even if assessment actions are set aside, depending on the underlying tax/return position. Precedent Treatment No authority was cited; the Court relied on the parties' concessions and the statutory scheme to address interest liability. Interpretation and reasoning The Government Pleader asserted, and the petitioner did not dispute, that interest is payable in respect of the amounts disclosed in the returns. The Court treated the concession as establishing the taxpayer's liability for interest on the tax amounts shown in the returns, separate from the validity of the impugned assessments. Accordingly, while quashing the assessment orders, the Court directed issuance of a demand notice specifically for interest arising from the returns and required payment within a stipulated period following such demand. Ratio vs. Obiter Ratio: Quashing of assessment/orders does not extinguish statutory interest liability on amounts demonstrably due under returns; a separate demand for interest may be issued and recovered notwithstanding invalidation of the assessment notices that prompted the writ, provided the underlying tax/interest liability is established or not disputed. Obiter: The Court did not examine contested factual scenarios where interest liability might be disputed; comments referencing undisputed concession are confined to the facts of the case. Conclusion on Issue 2 The Court directed the revenue authority to issue a demand notice for interest in respect of the amounts stated in the returns and ordered that the taxpayer shall pay the interest within one month of receipt of the judgment copy and the demand notice; recovery proceedings premised on the quashed DRC-07 notices were set aside, subject to the separate recovery of interest as directed. Cross-references and Interplay between Issues The determination that the assessment notices were vitiated (Issue 1) was made without prejudice to the statutory obligation to pay interest on tax amounts shown in returns (Issue 2); the Court treated the two inquiries as distinct-procedural invalidity of assessment versus substantive obligation to pay interest-and provided remedial directions consistent with that distinction.