This Writ Petition is filed challenging the Assessment Order dt.27-12-2019 passed by the 1st respondent under the Telangana GST Act, 2017 in relation to the petitioner for the tax period November, 2018.

2. It is not in dispute that petitioner did not file GSTR-3B return for the said month of November, 2018 and notice was issued on 29-01-2019 under Section 46 of the Telangana GST Act, 2017 warning the petitioner that if it did not file its return within 15 days, tax liability would be assessed under Section 62 of the Act based on the relevant material available with the 1st respondent along with interest and penalty.

3. Petitioner did not comply with the request to file GSTR-3B return, and best judgment under Section 62 of the Act was made through the impugned order by 1st respondent. In the impugned order, the 1st respondent states:

“4. Discussions and Findings: Your Average monthly SGST Tax is ₹ 1,50,000/-. Therefore your turnover under SGST, CGST and IGST are arrived to the best of my judgment to be 3 times the monthly Average and the Tax for the above tax period i.e. SGST ₹ 1,50,000/-, CGST ₹ 1,50,000/- and IGST ₹ 1,50,000/-.”

4. Learned counsel for petitioner contends that though the 1st respondent is entitled to do best judgment in the absence of filing of GSTR-3B, the method adopted by 1st respondent in multiplying by 3 times the monthly SGST tax of ₹ 50,000/- to determine the tax liability is arbitrary and not based on any principle. He also contended that 100% penalty has been levied without indicating under which provision of the Act the same has been levied.

5. Sri Sai Krishna, learned Assistant Government Pleader attached to the Office of the learned Advocate General appearing for respondents is unable to point out what is the principle followed by the 1st respondent in doing best judgment assessment in the manner indicated above i.e. multiplying 3 times the monthly average SGST, and adopting it as a basis for assessing the petitioner to tax for the month of November, 2018. He also could not indicate under which provision of law 100% penalty is levied on the petitioner.

6. In this view of the matter, since the impugned order appears to be prima facie arbitrary and contrary to the provisions of the Telangana GST Act, 2017, the impugned order is set aside; the matter is remitted back to the 1st respondent for fresh consideration; the 1st respondent shall issue notice to the petitioner indicating the method of assessment under the best judgment assessment provision contained in Section 62 of the said Act; grant a personal hearing to the petitioner; and then pass a reasoned order both with regard to levy of tax but also with regard to interest and penalty afresh within eight (8) weeks from the date of receipt of a copy of this order. In view of setting aside of the impugned order dt.27-12-2019 passed by 1^st respondent, consequential attachment orders/garnishee orders issued by respondent Nos.1 to 3 are also set aside.

7. The Writ Petition is allowed as above. No costs.

8. Consequently, miscellaneous petitions, pending if any, shall stand closed.