Though the 1st respondent is entitled to do best judgment in the absence of filing of GSTR-3B, the method adopted by 1st respondent in multiplying by 3 times the monthly SGST to determine the tax liability is arbitrary and not based on any principle. The matter is remitted back to the 1st respondent for fresh consideration.
Section 62 of the CGST Act, 2017— Assessment Orders – The petitioner challenged the Assessment Order dt.27-12-2019 for the tax period November, 2018.The petitioner did not file GSTR-3B return for the month of November, 2018 and notice was issued on 29-01-2019 warning the petitioner that if it did not file its return within 15 days, tax liability would be assessed under Section 62 of the Act based on the relevant material available, along with interest and penalty. The petitioner did not comply and best judgment under Section 62 of the Act was made through the impugned order wherein tax was assessed at 3 times the monthly average alongwith interest and penalty. The counsel for petitioner contended that though the respondent is entitled to do best judgment in the absence of filing of GSTR-3B, but the method adopted by respondent in multiplying by 3 times the monthly SGST tax of Rs. 50,000/- to determine the tax liability is arbitrary and not based on any principle. Further, 100% penalty is levied without indicating any provision. The respondent counsel is unable to point out what is the principle followed by the respondent in doing best judgment assessment. The court observed that the impugned order is arbitrary and contrary to the provisions of the Act, 2017.
Held that:- The Hon’ble High Court set aside the impugned order and remitted the respondent for fresh consideration.
Though the 1st respondent is entitled to do best judgment in the absence of filing of GSTR-3B, the method adopted by 1st respondent in multiplying by 3 times the monthly SGST to determine the tax liability is arbitrary and not based on any principle. The matter is remitted back to the 1st respondent for fresh consideration.
Section 62 of the CGST Act, 2017— Assessment Orders – The petitioner challenged the Assessment Order dt.27-12-2019 for the tax period November, 2018.The petitioner did not file GSTR-3B return for the month of November, 2018 and notice was issued on 29-01-2019 warning the petitioner that if it did not file its return within 15 days, tax liability would be assessed under Section 62 of the Act based on the relevant material available, along with interest and penalty. The petitioner did not comply and best judgment under Section 62 of the Act was made through the impugned order wherein tax was assessed at 3 times the monthly average alongwith interest and penalty. The counsel for petitioner contended that though the respondent is entitled to do best judgment in the absence of filing of GSTR-3B, but the method adopted by respondent in multiplying by 3 times the monthly SGST tax of Rs. 50,000/- to determine the tax liability is arbitrary and not based on any principle. Further, 100% penalty is levied without indicating any provision. The respondent counsel is unable to point out what is the principle followed by the respondent in doing best judgment assessment. The court observed that the impugned order is arbitrary and contrary to the provisions of the Act, 2017.
Held that:- The Hon’ble High Court set aside the impugned order and remitted the respondent for fresh consideration.