Brothers Engineering and Errectors Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court)
The writ petition before the Andhra Pradesh High Court concerned recovery proceedings initiated after best judgment assessment orders were passed due to non-filing of GST returns. The petitioner, a registered person under the GST regime, failed to file GSTR-3B returns for February 2023 to May 2023, leading to best judgment assessment orders dated 01.04.2023 and 19.07.2023. Subsequently, the petitioner filed the pending returns and paid the applicable taxes on 09.08.2023 and 13.09.2023.
Despite compliance, recovery proceedings were initiated based on the earlier assessment orders. The petitioner contended that under Section 62 of the GST Act, best judgment assessment orders are deemed withdrawn once returns are filed and tax is paid within the prescribed period, including the extended period permitted on payment of penalty. It was argued that the petitioner’s payments fell within this permissible timeframe, rendering the assessment orders ineffective.
The State opposed the petition, asserting that amendments extending the timelines under Section 62 came into effect only on 01.10.2023 and were therefore not applicable to the petitioner’s case. The Court considered a judgment of the Madras High Court, which held that the spirit of the amendment justified condonation of delay and withdrawal of assessment orders when returns were subsequently filed and taxes paid.
