Madras High Court Quashes Section 62 Assessment After Assessee Pays Higher Tax via Delayed GSTR-3B

Overview of the Dispute

In the judicial pronouncement of Narasus Diary Vs Deputy State Tax Officer II, the Madras High Court adjudicated on a critical procedural issue pertaining to best judgment assessments under the Goods and Services Tax framework. The writ petition was instituted by the assessee to contest an assessment order formulated under Section 62 of the applicable GST enactments. The core grievance stemmed from an ex-parte assessment triggered by the non-submission of the mandatory monthly tax return.

Chronology of Events and Factual Background

The genesis of the litigation traces back to the assessee's failure to furnish the GSTR-3B return for the tax period of June 2022. Consequently, the revenue department initiated default proceedings and finalized an assessment order under Section 62 on 20.10.2022.