Facts of the Case: M/S. Icore Concretes, a partnership firm registered under the GST Act (GSTIN 29AAFFI7443E1ZA), challenged a best-judgment assessment order passed under Section 62 of the CGST/KGST Act in Form GST ASMT-13 dated 18.04.2023 for the tax period of February 2023, issued for the petitioner's failure to file returns within the prescribed time. The petitioner had, however, subsequently filed its GSTR-3B returns for the period, albeit belatedly, and sought quashing of the assessment order and consideration of its original returns.

Issues Involved:

  1. Whether a best-judgment assessment under Section 62 must be set aside once the assessee files its GSTR-3B returns, even belatedly.
  2. Whether the beneficial amendment introduced by the Finance Act, 2023, permitting condonation of delay in filing GSTR-3B, applies to reduce the late fee otherwise payable.

Petitioner's Arguments:

  • The petitioner had filed its GSTR-3B returns for the relevant period, though belatedly, and the delay ought to be condoned in view of the beneficial amendment brought in by the Finance Act, 2023.

Respondent's Arguments:

  • The State's counsel did not seriously contest that the issue stood covered by the Court's own recent order in a similar matter (W.P. No. 12345/2024) and by the Madras High Court's ruling on the same beneficial amendment.

Court Order / Findings:

  • The Court reiterated its own reasoning from an earlier order, which had followed the Madras High Court's decision in Helmet House v. Deputy State Tax Officer-1, Madurai, holding that the amendment made by the Finance Act, 2023 is a beneficial amendment providing an additional window of time for assessees to file returns in GSTR-3B, and its benefit must be extended to assessees who have filed belated returns.
  • Per this beneficial scheme, for the first 60 days from the date of the order-in-original there would be no requirement of any late fee, with a fee of Rs. 100 per day of delay applicable only thereafter.
  • Applying this reasoning, the Court allowed the writ petition, held that the impugned assessment annexures stood withdrawn, and directed that the original returns filed by the petitioner be considered by the respondent.

Important Clarification:

  • The Finance Act, 2023 amendment relating to belated filing of GSTR-3B is a beneficial provision, and once an assessee has filed its returns — even belatedly — a best-judgment assessment under Section 62 ought to give way to consideration of those actual returns, subject only to the reduced late-fee regime (nil for the first 60 days, Rs. 100/day thereafter) rather than being displaced altogether by an estimated assessment.

Sections Involved:

  • Section 62, CGST Act, 2017 — assessment of non-filers of returns (best-judgment assessment).
  • Finance Act, 2023 amendment — condonation-of-delay scheme for GSTR-3B filings.

Decision – In Favour of: Assessee.

Case Details: High Court of Karnataka at Bengaluru; Writ Petition No. 12935 of 2025 (T-RES); Neutral Citation 2025:KHC:25057; Coram: Hon'ble Mr. Justice Suraj Govindaraj; Date of Order: 9th July, 2025.

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