Section 64 Of The CGST Act, 2017: Jurisdictional Limits On Summary Assessment And Judicial Interpretation

Introduction

Section 64 of the CGST Act, 2017 is one of the most extraordinary assessment provisions under the GST framework. It empowers tax authorities to conduct summary assessment proceedings in limited and urgent circumstances where immediate intervention is necessary to safeguard the interests of revenue.

However, the nature of this power requires that it be exercised with extreme caution. It is not intended to serve as a substitute for regular adjudication under Sections 73 or 74 of the CGST Act, nor can it be invoked merely because the tax department suspects tax evasion or seeks quicker determination of liability.

Statutory Framework of Section 64¹

Section 64(1) of the CGST Act permits the proper officer, with prior permission of the Additional Commissioner or Joint Commissioner, to summarily assess the tax liability of a person where: