Facts of the Case

The petitioner, a proprietary concern, was served with an assessment order for the month of March 2023, passed under Section 62 of the GST Act on the ground that returns had not been filed. The petitioner contended that it had subsequently filed GSTR-3B for the relevant period along with the applicable late fee, and that no tax or interest was in fact payable since the turnover related to exempted supplies. Despite this, the department continued efforts to recover the demand raised under the assessment order, prompting the petitioner to approach the Andhra Pradesh High Court.

Issues Involved

  1. Whether a best-judgment assessment order under Section 62 of the GST Act stands deemed withdrawn once the registered person files the requisite return along with the prescribed late fee.
  2. Whether consequential bank account and immovable property attachments made pursuant to such an assessment must be set aside once the assessment is deemed withdrawn.

Petitioner's Arguments

  • GSTR-3B for March 2023 had been filed on 09.08.2023 along with CGST and SGST late fee of Rs.2,900/- each.
  • Under Section 62(2), the assessment order stood deemed to be withdrawn once the necessary return was filed within the stipulated period along with late fee, so recovery could not continue.

Respondent's Arguments

  • The Government Pleader for Commercial Tax did not dispute the factual position regarding filing of the return and payment of late fee.

Court Order / Findings

  • The Court noted that Section 62(2) stipulates that any order passed under Section 62 shall be deemed to have been withdrawn once the necessary returns are filed within the stipulated period, subject to payment of late fee.
  • Since the petitioner had paid the necessary late fee, the assessment order was deemed to have been withdrawn.
  • The Court also relied on a Madras High Court ruling (Writ Petition (MD) No.18740 of 2024) and its own precedent in M/s. Brothers Engineering and Errectors Limited v. State of Andhra Pradesh (W.P.No.20705 of 2025), extending the same benefit under the amended Section 62(2).
  • The writ petition was allowed and any bank account or immovable property attachments made pursuant to the assessment order were set aside.

Important Clarification

  • Once a registered person files GSTR-3B for the relevant tax period along with the prescribed late fee, a best-judgment assessment order passed earlier under Section 62 for non-filing stands automatically and statutorily deemed withdrawn under Section 62(2) — no separate order of the department is needed to give effect to this withdrawal.
  • Recovery measures such as bank or property attachment initiated on the strength of an assessment that has since been deemed withdrawn cannot survive and must be set aside.

Sections Involved

  • Section 62, CGST Act, 2017 — assessment of non-filers of returns.
  • Section 62(2), CGST Act, 2017 — deemed withdrawal of the assessment order on filing of valid return with late fee.

Decision – In Favour of

In favour of the Assessee. The assessment order was treated as deemed withdrawn and the consequent attachments were set aside.

Case Details

High Court of Andhra Pradesh at Amaravati; W.P No.17700 of 2026; Coram: Hon'ble Sri Justice Ninala Jayasurya and Hon'ble Sri Justice T.C.D. Sekhar; Date of Order: 06.07.2026.

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