Section 64 of the CGST Act provides an extraordinary power to the proper officer to conduct a summary assessment in special cases where urgent action is necessary to protect the interest of revenue. The power requires approval from the Additional or Joint Commissioner.
This article explains the summary assessment process and the taxpayer's remedies.
When Section 64 Is Invoked
Summary assessment is invoked when:
- The officer has evidence showing a tax liability.
- Urgent action is necessary to protect the interest of revenue.
- The officer obtains approval from the Additional or Joint Commissioner.
The Assessment Order
The officer passes a summary assessment order based on the evidence available. The order can be passed without a full adjudication process.
Withdrawal of the Order
If the taxpayer applies within 30 days of receiving the order and the Additional/Joint Commissioner finds the order erroneous, the order can be withdrawn. The matter then follows the regular procedure under Sections 73 or 74.
Practical Response Steps
- Obtain a copy of the order and review the grounds.
- File an application for withdrawal within 30 days.
- Provide evidence showing that the tax liability is not urgent or that the assessment is incorrect.
- If the order is not withdrawn, challenge it through appeal.
Conclusion
Summary assessment under Section 64 is an extraordinary power reserved for urgent revenue protection cases. The withdrawal mechanism provides a safeguard, but prompt action is essential.
At Anuj Desai & Associates, we provide expert representation services for summary assessments. Our team can help you challenge improper assessments and protect your interests.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.