Facts of the Case

Tvl. Bernard Karuthudaiyan, holding GSTIN 33ENJPK8623R1Z8, failed to file GST returns for November 2024, prompting a GSTR-3A notice and a best-judgment assessment order dated 20.01.2025 in Form GST ASMT-13 under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017. The petitioner belatedly filed the return only on 18.08.2025, beyond the 60-day period ordinarily prescribed, and challenged the assessment order as cryptic, non-speaking and without jurisdiction, while the Department had by then attached the petitioner's bank account.

Issues Involved

  1. Whether filing a return beyond the 60-day period under Section 62(2) still results in automatic withdrawal of a best-judgment assessment order.
  2. Whether amounts already recovered and any bank attachment should be reversed upon such withdrawal.

Petitioner's Arguments

  • The impugned order under Section 62 was cryptic, non-speaking, illegal and arbitrary, passed wholly without proper application of mind to the taxpayer's position.
  • Having filed the return belatedly, the petitioner argued the assessment order stood withdrawn under Section 62(2), and the bank attachment should accordingly be lifted.

Respondent's Arguments

  • No specific opposition to the withdrawal principle was recorded, the primary issue being whether the belated filing beyond 60 days could still trigger automatic withdrawal under Section 62(2).

Court Order / Findings

  • The Court noted that though Section 62 prescribes a 60-day time limit for filing late returns, courts have consistently held this time limit to be directory and not mandatory.
  • Applying Section 62(2), the Court declared that once the belated return is filed, the best-judgment assessment order stands automatically withdrawn, while liability for interest and late fee continues, and any short-payment can be pursued via a fresh show cause notice.
  • The amount already collected was directed to be adjusted against future liabilities, and the bank account attachment was directed to be lifted automatically.

Important Clarification

  • The 60-day window under Section 62(2) of the GST Act for filing a return to withdraw a best-judgment assessment is directory, not mandatory — a return filed even after 60 days still triggers automatic withdrawal of the Section 62 order.
  • Withdrawal of the assessment order does not erase the assessee's liability for interest under Section 50 or late fee under Section 47, and the tax authority remains free to scrutinize the belated return and raise a fresh demand for any shortfall.

Sections Involved

  • Section 62, Tamil Nadu Goods and Services Tax Act, 2017 – provides for best-judgment assessment of non-filers of returns and automatic withdrawal upon subsequent filing.
  • Form GST ASMT-13 – prescribed form for a best-judgment assessment order under Section 62.

Decision – In Favour of

Decided in favour of the assessee. The assessment order was declared automatically withdrawn, and the bank attachment made pursuant to it was directed to be lifted.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD) No.32340 of 2025 and W.M.P.(MD) No.25454 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 12.11.2025

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