Whenever any dealer failed to discharge applicable tax in time, is liable to pay interest @ 18% for the delayed period. the A.A is directed to compute leviable interest as on date against the actual tax to be paid by the appellant
Best judgment Assessment— Section 62 of CGST Act— This appeal is filed by appellant against the tax assessment orders passed by the assessing authority disputing the levy of tax of Rs. 75,22,00,588/-.
The appellant is an assessee on the rolls of the AA and doing the business of supplying the security services.
Issues for Adjudication are as follows—
(1) Whether the best judgment orders through estimating the outward taxable supplies by AA, are based on any dependable and authentic evidence/basis or not?
(2) Whether the appellant’s contention that Section 62 cannot be invoked as GSTR-3B is not any return prescribed under Section 39 of the Act, hence these orders are legal or not?
(3) Whether the wilful suppression aspect and resultant levy of 100% penalty, is found to be having any basis and such wilfulness, has been established by AA or not?
(4) Whether the interest levied by AA, is in tune with the provisions of the GST Act or not?
Held that—
1) Any best judgment assessment must be supplemented by reason, because reason is the heart beat of any conclusion and fetches clarity in conclusion of any order, as such, without the reason best judgment orders becomes lifeless and amounts to denial of fundamental justice.
2) in view of the erroneous method adopted by AA for estimating outward taxable supplies through best judgment without mentioning reasons/evidence, hence the tax so levied by the AA of Rs. 36,22,84,718/- is annulled and modified as per actual tax liability of the appellant. In the result, the appeal is modified by fixing the actual tax liability (to be determined as per GSTR-1 returns of the appellant)
3) None of the facts that could give rise to the inferences of the ‘wilfulness’ are specified in the very brief pre-common assessment Show Cause Notice and also in the common assessment orders in Form GST ASMT-13. Hence, the levy of penalty @ 100% of determined turnovers are also to be deleted. It is ordered accordingly.
4) whenever any dealer failed to discharge applicable tax in time, is liable to pay interest @ 18% for the delayed period. Therefore, the levy of interest is upheld, but the A.A is directed to compute leviable interest as on date against the actual tax to be paid by the appellant as discussed at above paras.
Whenever any dealer failed to discharge applicable tax in time, is liable to pay interest @ 18% for the delayed period. the A.A is directed to compute leviable interest as on date against the actual tax to be paid by the appellant
Best judgment Assessment— Section 62 of CGST Act— This appeal is filed by appellant against the tax assessment orders passed by the assessing authority disputing the levy of tax of Rs. 75,22,00,588/-.
The appellant is an assessee on the rolls of the AA and doing the business of supplying the security services.
Issues for Adjudication are as follows—
(1) Whether the best judgment orders through estimating the outward taxable supplies by AA, are based on any dependable and authentic evidence/basis or not?
(2) Whether the appellant’s contention that Section 62 cannot be invoked as GSTR-3B is not any return prescribed under Section 39 of the Act, hence these orders are legal or not?
(3) Whether the wilful suppression aspect and resultant levy of 100% penalty, is found to be having any basis and such wilfulness, has been established by AA or not?
(4) Whether the interest levied by AA, is in tune with the provisions of the GST Act or not?
Held that—
1) Any best judgment assessment must be supplemented by reason, because reason is the heart beat of any conclusion and fetches clarity in conclusion of any order, as such, without the reason best judgment orders becomes lifeless and amounts to denial of fundamental justice.
2) in view of the erroneous method adopted by AA for estimating outward taxable supplies through best judgment without mentioning reasons/evidence, hence the tax so levied by the AA of Rs. 36,22,84,718/- is annulled and modified as per actual tax liability of the appellant. In the result, the appeal is modified by fixing the actual tax liability (to be determined as per GSTR-1 returns of the appellant)
3) None of the facts that could give rise to the inferences of the ‘wilfulness’ are specified in the very brief pre-common assessment Show Cause Notice and also in the common assessment orders in Form GST ASMT-13. Hence, the levy of penalty @ 100% of determined turnovers are also to be deleted. It is ordered accordingly.
4) whenever any dealer failed to discharge applicable tax in time, is liable to pay interest @ 18% for the delayed period. Therefore, the levy of interest is upheld, but the A.A is directed to compute leviable interest as on date against the actual tax to be paid by the appellant as discussed at above paras.