Extension of return filing period prescribed under section 62 shall be denied for getting the benefit of withdrawal of an assessment order passed on best judgment basis. 

Facts: In this case, the Petitioner has defaulted on filing of returns from July 2018 onwards but returns upto August 2018 have later been filed satisfying the tax due with interest. The Respondent issued series of orders of assessment under Section 62 of the CGST Act, 2017 pursuant to a Best judgment assessment.

In this matter, although there is a provision under the CGST Act for an automatic setting aside of the best judgment assessment in circumstances where the registered dealer furnishes a valid return within 30 days of service of the assessment order, the Petitioner sees this provision as futile in his case inasmuch as even if the Petitioner were to file the returns within the extended time of 30 days from the date of receipt of the best judgment assessment orders, he would not be in a position to pay the admitted tax liability as reflected from the returns.

It is therefore that he prays for a direction to quash the orders issued by the Respondent on the ground that while passing the said assessment orders on best judgment basis, it did not adhere to the yardsticks indicated in Section 62 for exercise of the power.

Issue: Whether extension can be granted under Section 62 of the CGST Act to file return?

Held: The Hon’ble Kerala High Court discussed Section 62(1) of the CGST Act and held as under-

• The statutory prescription of 30 days from the date of receipt of the assessment order passed under Section 62(1) of the CGST Act has to be strictly construed against the Petitioner and in favour of the revenue, since this is a provision in a taxing statute that enables an assessee to get an order passed against him on best judgment basis set aside. The provision must be interpreted in the same manner as an exemption provision in a taxing statute.
• The HC said that it is not justified to grant an extension of the period contemplated under Section 62(2) of the CGST Act, so as to enable the Petitioner to file a return beyond the said period for the purposes of getting the benefit of withdrawal of an assessment order passed on best judgment basis under Section 62(1) of the CGST Act.

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