Facts of the Case

M/s Siva Electricals was served a best-judgment assessment order dated 22.06.2023, passed under Section 62 of the GST Act for April 2023, on the ground that it had not filed its returns. The petitioner contended that it had subsequently filed Form GSTR-3B for the relevant period on 31.08.2023 along with the prescribed late fee (Rs.1,000 each under CGST and SGST), and that no tax or interest was in fact payable since the returns related to exempted turnover. Despite this, the respondents proceeded to recover the amount demanded under the assessment order.

Issues Involved

  1. Whether an assessment order passed under Section 62 stands deemed to be withdrawn once the registered person files the required returns along with the late fee within the stipulated period, even where the return discloses no tax liability.

Petitioner's Arguments

  • Section 62(2) of the GST Act stipulates that an order passed under Section 62 is deemed withdrawn once the necessary returns are filed within the period stipulated, upon payment of late fee.
  • The petitioner had duly filed Form GSTR-3B with the applicable late fee, and its returns related to exempted turnover with no tax or interest payable.

Respondent's Arguments

  • No specific rebuttal is recorded beyond the department seeking to recover the amount demanded under the original assessment order.

Court Order / Findings

  • The Court held that since the petitioner had paid the necessary late fee, the Section 62 order must be deemed to have been withdrawn under Section 62(2).
  • It relied on a ruling of the Madras High Court (Madurai Bench) which, after the amendment to Section 62(2), had similarly condoned delay in filing GSTR-3B and deemed the assessment order withdrawn, and on its own prior decision in M/s. Brothers Engineering and Errectors Limited v. State of Andhra Pradesh extending the same benefit.
  • The writ petition was allowed; any bank attachment caused under the assessment order was set aside; no costs.

Important Clarification

  • The deeming fiction under Section 62(2) operates automatically once the registered person files the pending return with the prescribed late fee within the statutory window — the department cannot continue coercive recovery under a Section 62 order that stands deemed withdrawn by operation of law.
  • This benefit applies even where the return, once filed, discloses no tax liability on account of exempted turnover.

Sections Involved

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

Decision – In Favour of

In favour of the Assessee — the assessment order was held deemed withdrawn, and any consequential bank attachment was set aside.

Case Details

Court: High Court of Andhra Pradesh at Amaravati — Case No.: Writ Petition No. 17701/2026 — Coram: Hon'ble Justices Ninala Jayasurya and T.C.D. Sekhar — Date of Order: 6 July 2026.

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