GST Determination Order Passed Before Annual Return Due Date Is Premature And Invalidation Required

By | August 20, 2026
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GST Determination Order Passed Before Annual Return Due Date Is Premature And Invalidation Required
GST Determination Order Passed Before Annual Return Due Date Is Premature And Invalidation Required
Issue
Whether a tax determination order under Section 73 passed prior to the statutory due date for filing the annual return under Section 44 is legally sustainable.
Facts
  • Assessment Period: The matter pertains to the determination of GST liability for Financial Year 2022–23 under Section 73 (tax or ITC not involving fraud).
  • Statutory Due Date: The statutory due date for filing the annual return for FY 2022–23 under Section 44 was December 31, 2023.
  • Premature Order: The Adjudicating Officer issued a determination order assessing tax liability and subsequently issued a bank attachment order prior to December 31, 2023.
  • Subsequent Compliance: The annual return was filed by the petitioner after the premature order was passed.
  • Petitioner’s Challenge: The petitioner challenged the determination order and bank attachment on the ground of premature adjudication and lack of jurisdiction.
Decision
  • Lack of Proper Officer Jurisdiction: In favor of Assessee. Prior to the expiry of the annual return due date (December 31, 2023), the Proper Officer lacked legal authority to assess the final tax liability for FY 2022–23.
  • Determination Order Set Aside: In favor of Assessee. The impugned determination order and consequential bank attachment were set aside as premature.
  • Matter Remanded: Matter remanded. The Revenue was granted liberty to initiate fresh proceedings for FY 2022–23 after providing due notice and an opportunity of hearing.
Key Takeaways
  • Adherence to Statutory Timelines: Tax authorities cannot pass assessment orders under Section 73 for a financial year before the statutory deadline for filing the annual return under Section 44 expires.
  • Invalidity of Premature Recovery Actions: Consequential recovery steps, such as bank account attachments, arising from premature and jurisdictionally flawed orders are legally unsustainable and void.
  • Right to Submit Complete Returns: Taxpayers must be allowed the full statutory period to reconcile accounts and submit their annual returns before tax determination proceedings are finalized.
HIGH COURT OF PATNA
Azad Enterprises
v.
State of Bihar
Anil Kumar Sinha and Vikash Kumar, JJ.
Civil Writ Jurisdiction Case No.14211 of 2025
AUGUST  6, 2026
D.V. Pathy, Sr. Adv., Sadashiv Tiwari, Shivani Dewalla and Hiresh Karan, Advs. for the Petitioner. Vivek Prasad, GP 7 for the Respondent.
ORDER
Anil Kumar Sinha, J.- Heard learned counsel for the parties.
2. The present writ application has been filed for setting aside the order dated 25.11.2023, passed by the Adjudicating Authority, under Section 73(9) of the GST Act. The petitioner has further prayed for quashing of the notice dated 28.03.2025 for attachment of the bank account of the petitioner.
3. Learned senior counsel for the petitioner submits that petitioner filed the monthly as well as quarterly return regularly within time period for filing annual return under Section 73 under DRC – 7 was 31.12.2023, but Proper Officer prior to the last date of filing return by the petitioner has passed the assessment order on 25.11.2023. He further submits that however after assessment order the petitioner has filed its annual return on 20.01.2024, for which the petitioner may be held liable to pay late fee.
4. Learned counsel for the State submits that it is true that the assessment order has been passed by the Assessing Authority prior to due date for filing annual return by the petitioner.
5. Considering the fact that the due date for filing annual return was 31.12.2023, but the order of Adjudicating Officer, assessing the tax liability upon the petitioner is prior to the last date of filing annual return i.e. on 25.11.2023. The Proper Officer had no authority to assess tax liability upon the petitioner, under Section 73(9) prior to expiry of due date of filing return for the financial year 2022-2023.
6. In the result, the order passed by the Proper Officer imposing tax liability upon the petitioner dated 25.11.2023 is set aside. The matter is remanded back to the Proper Officer for initiate a fresh proceeding for assessment of tax of the petitioner for the financial year 2022-2023, after giving proper notice and opportunity of hearing to the petitioner. The entire exercise shall be completed by the Competent Authority within a period of three months in accordance with law.
7. The petitioner is directed to appear before the Proper Officer/Adjudicating Officer within a period of two weeks without waiting for the notice having been issued by him.