Case Title: Sree Shiva Enterprises v. Deputy State Tax Officer-I, Tamil Nadu Commercial Taxes Department
Court: Madurai Bench of Madras High Court
Petition No.: W.P.(MD) No. 26619 of 2024
Date of Judgment: 09.01.2025
Relevant Section: Section 62(2) of the Tamil Nadu Goods and Services Tax Act, 2017
Category of Dispute: Assessment under Best Judgment / Return Filing Delay
Facts: (Paras 2–4)
The petitioner, Sree Shiva Enterprises, failed to file its GST return for August 2023. Consequently, the assessing officer passed an order under Section 62(1) of the TNGST Act on 12.10.2023. Subsequently, the petitioner filed its return on 18.12.2023, within the extended 120-day period permissible under the amended Section 62(2). Despite this, a show cause notice was issued for cancellation of registration due to non-filing of returns. The petitioner challenged the assessment and recovery of ₹56,445, relying on previous High Court rulings which held that once a valid return is filed within the prescribed time, the assessment order stands withdrawn.
Questions for Consideration:
Whether the best judgment assessment order passed under Section 62(1) of the TNGST Act remains valid when the registered person subsequently files a valid return within the extended period allowed under Section 62(2) (including the proviso introduced by Act 8 of 2023).
Court’s Observations: (Paras 6–7)
The Court noted that Section 62(2), as amended, allows filing of a valid return within 60 days, extendable by another 60 days on payment of an additional late fee of ₹100 per day. Since the petitioner filed its return on 18.12.2023, within this 120-day window, the earlier assessment order dated 12.10.2023 was statutorily deemed to be withdrawn. The Assessing Officer was therefore required to take on record the valid return and reassess it per law, while imposing the appropriate late fee under the proviso to Section 62(2).
Judgment: (Para 8)
The High Court disposed of the writ petition by directing the respondent to:
-
Accept and process the petitioner’s valid return filed on 18.12.2023.
-
Levy late fee as per the proviso to Section 62(2) of the TNGST Act.
-
Treat the earlier assessment order as withdrawn by operation of law.
No costs were awarded.
Summary of Cases Referred:
| Case | Citation / Date | Verdict |
|---|---|---|
| W.P. No. 34770 of 2023 | 14.12.2023 | Held that assessment order under Section 62(1) is deemed withdrawn once valid return is filed within permissible period. |
| W.P. No. 4122 of 2022 | 29.01.2024 | Reaffirmed the above principle; return filing within statutory period nullifies best judgment assessment. |
Between Fine Lines (Practical Takeaway):
This judgment reinforces a taxpayer-friendly interpretation of Section 62(2). Even if a return is filed after the initial due date but within the extended 120-day period (including payment of late fee), the best judgment assessment stands automatically withdrawn. Dealers should ensure timely return filing within this extended timeline to avoid enforcement actions and preserve their registration.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
