Facts of the Case

The petitioner, Tvl. Bernard Karuthudaiyan (GSTIN 33ENJPK8623R1Z8), challenged an assessment order dated 18.02.2025 passed under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017 in Form GST ASMT-13, for the period December 2024, seeking its quashing as cryptic, non-speaking, illegal and without jurisdiction. The petitioner had failed to file returns for December 2024, following which a GSTR-3A notice was issued under Section 46 and, upon continued non-filing, the impugned best-judgment assessment was passed. The petitioner subsequently filed the belated return on 24.08.2025 — beyond the 60-day period contemplated under the statute — and challenged consequential recovery, including attachment of the petitioner's bank account.

Issues Involved

  1. Whether the 60-day time limit under Section 62(2) of the TNGST Act for filing a valid return after a best-judgment assessment is mandatory.
  2. Whether filing of the belated return, even beyond 60 days, results in automatic withdrawal of the Section 62 assessment order.
  3. Whether the consequential bank attachment ought to be lifted.

Petitioner's Arguments

  • The impugned order in Form GST ASMT-13 was cryptic, non-speaking and passed without jurisdiction.
  • Since the belated return had since been filed, the assessment ought to be treated as withdrawn under Section 62(2), and the attachment on the bank account ought to be lifted.

Respondent's Arguments

  • The Government Advocate did not dispute the factual position regarding the belated filing of returns; the matter proceeded principally on the legal effect of Section 62(2) once returns are filed beyond the 60-day window.

Court Order / Findings

  • The Court reproduced Section 62 of the TNGST Act and noted that while sub-section (2) contemplates filing a valid return within 30 days (extendable) of service of the assessment order for it to be deemed withdrawn, courts have consistently held that this outer time limit is directory and not mandatory.
  • Applying the statutory mandate of Section 62(2), the Court declared that the impugned assessment order stood automatically withdrawn once the belated return was filed, notwithstanding the delay beyond the prescribed period.
  • The respondent was left at liberty to verify the returns filed, and to issue a fresh show cause notice for any short-payment detected.
  • The amount already collected from the petitioner was directed to be adjusted against future liabilities, and the attachment on the petitioner's bank account was directed to stand automatically lifted.
  • The writ petition was allowed with this liberty to the respondent; connected miscellaneous petitions were closed.

Important Clarification

  • The 60-day (extendable) period prescribed for filing a valid return after a best-judgment assessment under Section 62 of the GST Act is not mandatory; filing the return even after this period results in automatic withdrawal of the best-judgment assessment order under Section 62(2), subject to the assessee's continuing liability for interest under Section 50 and late fee under Section 47.
  • Once withdrawal is triggered, any bank attachment made to recover the withdrawn demand must be lifted, though the authority remains free to verify the filed return and raise a fresh demand if short-payment is detected.

Sections Involved

  • Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017 — empowers best-judgment assessment of non-filers of returns, and provides for automatic deemed withdrawal of such assessment on filing of a valid return.
  • Section 46 of the TNGST Act — notice to a registered person who fails to furnish a return.
  • Sections 47 and 50 of the TNGST Act — late fee and interest liability that survives withdrawal of the assessment.

Decision – In Favour of

Allowed in favour of the Assessee, with the Section 62 assessment declared automatically withdrawn and the bank attachment directed to be lifted, subject to the Department's liberty to verify returns and raise a fresh demand if warranted.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD) No.32341 of 2025 with W.M.P.(MD) No.25457 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 12th November, 2025

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