Facts of the Case

The petitioner, M/s ABC Enterprises, a registered person under the GST Act, was served an assessment order dated 21.04.2022 (Reference No. ZD370422004680S, Form GST-ASMT-13) under Section 62 of the CGST Act for the tax period February 2021, on the ground that no returns had been filed for that period. The order raised a demand of Rs.2,02,13,190/- in tax (IGST, SGST and CGST combined) with interest of Rs.39,67,324/- and an equal penalty. The petitioner subsequently filed its returns and cleared the dues payable thereunder, but the respondents nonetheless sought to recover the amounts under the assessment order, including by attaching the bank account of a sister concern/supplier of the petitioner. The petitioner approached the Andhra Pradesh High Court seeking a declaration that the assessment order stood deemed withdrawn.

Issues Involved

  1. Whether the Section 62 best-judgment assessment order stood deemed withdrawn once the petitioner filed its returns and cleared the dues.
  2. What became of amounts already recovered under the assessment order, including by attachment of a related concern's account.

Petitioner's Arguments

  • The petitioner contended that the assessment order had to be treated as deemed withdrawn under Section 62(2) since it had subsequently filed its returns and cleared all dues payable under those returns.
  • It was further submitted that the respondents had already recovered the tax dues and other amounts claimed under the assessment order by attaching the account of a sister concern, which also happened to be a supplier to the petitioner.

Respondent's Arguments

The order does not record a separate contested defence by the respondents on the deemed-withdrawal point; the dispute centred on the consequence of the recovery already effected.

Court Order / Findings

  • The Court held that, since the petitioner had filed its returns, it must be declared that the impugned assessment order stands withdrawn in terms of Section 62(2) of the GST Act.
  • As regards the recovery already effected on the basis of the (now withdrawn) assessment order, the Court left it open, directing that it shall abide by such necessary proceedings as the petitioner may initiate.
  • The writ petition was disposed of with no order as to costs.

Important Clarification

  • Under Section 62(2) of the CGST Act, a best-judgment assessment order passed for non-filing of returns is deemed withdrawn once the registered person subsequently files a valid return and clears the dues under that return (interest under Section 50(1) and late fee under Section 47 continue to apply).
  • Where recovery has already been effected on the strength of a since-withdrawn assessment order — including by attaching a third party's account — the taxpayer must pursue separate proceedings to recover or reverse that recovery; the deemed-withdrawal declaration does not by itself automatically undo completed recovery action.

Sections Involved

  • Section 62, Central Goods and Services Tax Act, 2017 – best-judgment assessment of non-filers, and the deemed-withdrawal mechanism under sub-section (2) once valid returns are filed.

Decision – In Favour of

The decision is in favour of the Assessee — the assessment order was declared deemed withdrawn, though the fate of amounts already recovered was left to further proceedings.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No: 3525/2026
Coram: Justice R. Raghunandan Rao and Justice T.C.D. Sekhar
Date of Order: 27.04.2026

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