GST Assessment Order Passed Before Annual Return Due Date Is Without Authority: Patna High Court

Introduction

A significant ruling has emerged from the Patna High Court, clarifying an important procedural boundary under the Goods and Services Tax framework. The Court addressed a fundamental question: can a Proper Officer pass an assessment order under Section 73(9) of the GST Act before the due date for filing the annual return has elapsed? The answer, as delivered by the Court, is an emphatic no.

Case Background

Case Name: Azad Enterprises Vs State of Bihar (Patna High Court)
Case Number: Civil Writ Jurisdiction Case No. 14211 of 2025
Date of Order: 06/08/2026
Court: Patna High Court

The dispute arose from an assessment order dated 25.11.2023 passed by the Adjudicating Authority against Azad Enterprises under Section 73(9) of the GST Act, pertaining to the financial year 2022-23. In addition to challenging the assessment order, the assessee also sought quashing of a notice dated 28.03.2025 issued for attachment of its bank account.

Facts of the Case

Filing Conduct of the Assessee

Azad Enterprises maintained that it had duly filed its monthly as well as quarterly returns within the prescribed timelines. The due date for filing the annual return for FY 2022-23 was 31.12.2023 under the relevant provisions governing filing under DRC-7 in proceedings under Section 73.

The Premature Assessment Order

Notwithstanding the fact that the deadline for filing the annual return had not yet arrived, the Proper Officer proceeded to pass the assessment order on 25.11.2023 — more than a month before the due date of 31.12.2023. This meant the assessee had not yet exhausted its statutory right to file the annual return when the assessment was completed against it.

Following the assessment order, the assessee filed its annual return on 20.01.2024. The assessee candidly acknowledged before the Court that this filing was delayed beyond the due date of 31.12.2023, and accordingly accepted potential liability for the applicable late fee. However, the assessee's primary contention was that the assessment order itself was premature and thus legally unsustainable.

State's Concession

Notably, the learned counsel appearing for the State of Bihar did not contest the factual position. The State's counsel expressly accepted before the Court that the assessment order had indeed been passed by the Assessing Authority prior to the expiry of the due date for filing of the annual return by the assessee.

The central legal question before the Patna High Court was narrow but consequential:

Whether a Proper Officer has the authority to assess tax liability under Section 73(9) of the GST Act before the expiry of the due date prescribed for filing the annual return for the relevant financial year?

Court's Analysis and Findings

Chronological Examination

The Court carefully examined the timeline of events:

  • Due date for filing annual return for FY 2022-23: 31.12.2023
  • **Date of assessment order under Section 73(9)😗* 25.11.2023

The assessment order was thus passed approximately 36 days before the annual return due date had even lapsed.