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"BEST JUDGMENT ASSESSMENT" : Section 62
Section 62 pertains to the assessment of tax liability for registered entities that fail to furnish returns under sections 39 or 45, even after receiving a notice under section 46.
If a valid return is furnished within 30 days of the assessment order, the order is deemed to have been withdrawn, but interest and late fee liabilities continue.
1. Patna High Court
1.1 G. Power Solution
Where assessee alleged that assessment orders were passed by Assistant Commissioner for non-filing of GSTR-3B returns without issuance of any show cause notice and affording an opportunity for hearing,
since department had no objection to remand matter to Assessing Authority for a decision on merits, ex parte orders were to be set aside for readjudication.
2. Madras High Court
2.1 Comfort Shoe Components
Where assessee had failed to file GST returns within prescribed time limit, and Revenue had issued best judgment assessment U/s 62(1), 30-day time limit for filing returns under S.62(2) for condonation of delay was held to be directory, not mandatory.
2.2 Anand Cini Services Pvt. Ltd.
Where GST registration of assessee was canceled and assessee could not restore registration due to Covid outbreak,
best judgment assessment orders passed by respondent authority by attaching petitioner's bank account was to be set aside as assessee filed returns for relevant years subsequent to restoration of GST registration.
3. Rajasthan High Court
3.1 Ashok Varandani
Where assessee did not file its return under section 39 in Form GSTR-3B, even though it was served with a notice requiring to file its return within 15 days,
the Assessing Authority was left with no option but to proceed to make best judgment assessment under section 62 and therefore assessee could not complain of violation of principles of natural justice.
4. Kerala High Court
4.1 Joy Mathew
When the assessee has filed valid revised returns within 30 days of receipt of Order U/s 62, accordingly, impugned orders are deemed to withdrawn and consequent recovery notice not sustainable.
Thanks
Abhishek Raja Ram