Page 146 - GSTL_18th June 2020_Vol 37_Part 3

360 GST LAW TIMES [ Vol. 37
2020 (37) G.S.T.L. 360 (Appellate Authority - A.P.)

BEFORE THE APPELLATE AUTHORITY UNDER GST,
ANDHRA PRADESH
Smt. P. Vaishnavi, Joint Commissioner (ST) & Appellate Authority (ST)
IN RE : OMSAI PROFESSIONAL DETECTIVE AND SECURITY
SERVICES PVT. LTD.
Order No. 5132/2020, dated 16-3-2020 in Appeal No. APL1900230
Best judgment assessment - Failure to file returns on outward supplies
- Best judgment assessment should be based on taking into account of all the
relevant material, available or gathered by assessing authority - Impugned or-
der does not speak of any material collected by assessing authority - No en-
quiries made to establish turnover assumed by assessing authority - Assess-
ment not bona fide - Failure on assessing authority’s part of to any reason or
basis in estimating the quantum of the outward taxable supplies - Every liti-
gant, who approaches assessing authority for relief entitled to know reason for
acceptance or rejection of his prayer as reasoning can be subjected to examina-
tion at higher forums - Returns in Form GSTR-1 filed by assessee not rejecta-
ble due to lack of any additional contra evidence, hence the turnover and tax
liability disclosed through these GSTR-1 returns to be confirmed as the real
turnovers of assessee - No attempt by CTO to gather any material to at least
indicate, if not to establish, that quantum of outward supplies declared by
dealer/supplier in Form GSTR-1 for that month incorrect and incomplete -
Quantum of outward supplies declared by dealer in such return held to be in-
correct and incomplete and inflated to 150% of declared outward supplies to
arrive at probable suppressed outward supplies for that month @ 50% - Esti-
mations fall foul of law if they are smacked off factors like wildness, vindic-
tiveness, arbitrariness, capriciousness, etc. - Best judgment common assess-
ment to be declared as non est/void - Actual tax liability to be determined as
per GSTR-1 returns of dealer for period from January, 2019 to February, 2019 -
Section 62 of Central Goods and Services Tax Act, 2017. - Presumption of sale or
purchase turnover is not any substitute for the proof of sale/purchase. Any presumption
shall always linked to some sort of material like bills, vouchers or payment consideration
evidence, etc. If the estimation is not based on any evidences, such factual presumptions
are always rebuttable. That means, without any incriminating material to establish the
assumed suppressions of taxable supply of services, best judgment orders cannot be up-
held as de jure. Any levy basing on mere presumptions, but not substantiated by any sort
of incriminating material to establish the suppression indubitably, shall be seen as bad in
law and in violation to the principles of natural justice. Any best judgment assessment
must be supplemented by reason, because reason is the heart beat of any conclusion and
fetches clarity in conclusion of any order, as such, without the reason best judgment or-
ders becomes lifeless and amounts to denial of fundamental justice. The reason/evidence
would act as live link between the mind of assessing authority and the resultant conclu-
sion arrived at. [para 23]
Best judgment assessment - Assessment under Section 62 of Central
Goods and Services Tax Act, 2017 can be made only when dealer fails to file
return specified in Section 39(1) ibid read with Rule 61(1) of Central Goods
and Services Tax Rules, 2017 in return in Form GSTR-3. [para 23]

GST LAW TIMES  18th June 2020  146