Assessment of non-filers of returns: belated returns may be accepted and adjudication orders set aside with costs payable.

Assessment of non-filers of returns under GST was addressed: adjudication orders issued under assessment provisions were set aside and petitioners were permitted to have belated returns taken on record, with authorities reserved the right to re-adjudicate the tax liability under the tax demand and adjudication provisions; all other contentions remain open. The decision permits acceptance of late returns subject to fresh adjudication on merits and procedural compliance, and imposes an adverse cost on petitioners to the High Court Legal Services Authority for belated filing and litigation conduct.

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Issues: Whether the adjudication orders passed under Section 62 of the Central Goods and Services Tax Act, 2017 for the periods March 2023, April 2023, June 2023 and July 2023 should be set aside and the belatedly filed returns taken on record, with liberty to the authorities to proceed to adjudicate in accordance with law.

Analysis: The adjudication orders impugned were passed under Section 62 of the GST Act on the premise that returns were not filed, and contained liberty to file returns within a specified period. Section 62 provides that where a registered person furnishes a valid return within the period specified after service of an assessment order, the assessment order shall be deemed to have been withdrawn, subject to payment of interest or late fee as applicable; further provisos allow extended filing on payment of additional late fee. The petitioner produced evidence of belated filing for the specified periods after the orders were passed. In view of the statutory scheme under Section 62 and the fact that the adjudication orders were not founded on returns, it is appropriate in the circumstances to permit the belated returns to be taken on record and permit the authorities to adjudicate afresh under the appropriate provisions (Sections 73 or 74, as applicable), preserving the statutory consequences for late filing. The court exercised discretion to afford the petitioner another opportunity while imposing costs for the delay.

Conclusion: The adjudication orders passed under Section 62 for the periods March 2023, April 2023, June 2023 and July 2023 are set aside; the belated returns filed by the petitioner shall be taken on record and the respondent authorities are directed to proceed to adjudicate the matters in accordance with law (including Sections 73 or 74 of the GST Act, as applicable). Costs of Rs.25,000/- awarded to the High Court Legal Services Authority against the petitioner.

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