AP HC Quashed GST Best Judgment Assessments for Belated Return Filing

Meka Dredging Company Private Limited Vs Deputy Assistant Commissioner II (Andhra Pradesh High Court)

In Andhra Pradesh High Court, the petitioner, a registered person under the Andhra Pradesh Goods and Services Tax Act, 2017, failed to file GST returns for March 2023 to May 2023 within the prescribed time. As a result, the assessing authority passed best judgment assessment orders under Section 62 of the GST Act on 27.05.2023 (March 2023), 21.06.2023 (April 2023), and 12.07.2023 (May 2023). Subsequently, the petitioner filed the returns and paid tax along with applicable interest and late fees on different dates.

Despite the filing of returns and payment of dues, the authorities initiated recovery proceedings based on the assessment orders. The petitioner challenged these recovery actions through a writ petition, contending that for May 2023, the returns were filed within 120 days, attracting Section 62(2) and resulting in deemed withdrawal of the assessment order. For March 2023, it was argued that although returns were filed beyond the original 60-day limit, the later amendment extending the period to 120 days with effect from 01.10.2023 operated retrospectively. For April 2023, the delay exceeded 120 days by 12 days, which the petitioner sought to be condoned based on earlier judicial precedents.

The Government Pleader confirmed the dates of filing and payment of tax but did not provide instructions regarding payment of interest and late fees. The Court held that compliance under Section 62 was achieved for May 2023 within time. For March and April 2023, although there was delay, the Court held that such delay could be condoned, relying on judgments of the Madras High Court and earlier decisions of the same Court.

Accordingly, the Court disposed of the writ petition, declaring that the assessment orders dated 27.05.2023, 21.06.2023, and 12.07.2023 stood deemed withdrawn, subject to verification and payment of any unpaid interest and late fees within six weeks. No costs were awarded.

FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT

The petitioner, who is a registered person under the Andhra Pradesh Goods and Services Act, 2017 (for short “the GST Act”), has not filed his returns for the months March-2023 to May-2023, within time. Consequently, the assessing authority has passed assessment of orders under Section 62 of the GST Act. Thereafter, the petitioner filed his returns along with payment of tax, interest and late fee. The details of these events are given below:

2. The respondent authorities, however, sought recovery of the dues, raised under the aforesaid orders of assessment. Aggrieved by the said recovery of tax, the petitioner has approached this Court by way of the present writ petition.

3. Sri. K V Girish Choudary, the learned counsel appearing for the petitioner would contend that as far as the month of May 2023 is concerned, the filing of returns and payment of necessary dues had been completed within the period of 120 days along with payment of late fee and as such the provisions of Section 62(2) of the GST Act would be applicable and the order, dated 12.07.2023 would have to be deemed to have been withdrawn.

4. Learned counsel would submit that for the month of March 2023, though the returns had been filed by 22.08.2023, the period available, at that point of time was 60 days which was subsequently extended to 120 days, by virtue of amendment to Section 62, with effect from 01.10.2023. Learned counsel would submit that though the amendment had come subsequently, the said amendment would operate retrospectively and ensure to the benefit of the petitioner.

5. As far as the month of April 2023 is concerned, the learned counsel would submit that filing of the returns on 01.11.2023, was beyond the period of 120 days, by an extra 12 days. He would rely upon the judgment of this Court in M/s. Brothers Engineering and Erectors Limited as well as M/s Indubaala Enterprises, dated 13.08.2025 in W.P.No.20705 of 2025, and the order, dated 26.11.2025 in W.P.Nos.31323 of 2025 and batch, to contend that the said delay can be condoned.

6. The learned Government Pleader, on instructions, would submit that the returns and payment of taxes had been done on the dates mentioned by the petitioner. However, his instructions do not speak about the payment of late fee and interest.

7. Filing of returns and payment of taxes by the petitioner, for the month of May 2023 is within the time limit stipulated under Section 62 of the GST Act.

8. Though the petitioner had complied with the requirements of Section 62, for the month of March 2023, belatedly, the subsequent amendment has been treated to have retrospective effect and as such there is compliance of Section 62 of the GST Act. As far as the months of March 2023 and April 2023 are concerned, there has been a delay beyond the time stipulated under Section 62 of the GST Act. However, this delay, in the circumstances of the case, can be condoned. Further, the High Court of Madras, in its judgment, dated 02.08.2024 in W.P.(MD) No. 18740 of 2024, in similar circumstances had held that such delay can be condoned. This Court had followed the said judgment in its judgment, dated 13.08.2025 in W.P. No. 20705 of 2025 and in the judgment, dated 26.11.2025 in W.P.Nos.31323 of 2025and batch.

9. Following these two judgments, this Writ Petition is disposed of declaring that the orders of assessment, dated 27.05.2023, 21.06.2023 and 12.07.2023 are deemed to have been withdrawn. Needless to say, this order is subject to verification as to whether late fee and interest has been paid or not. If such late fee and interest have not been paid, the same shall be paid within a period of six (06) weeks from today. There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed.