PSD Services And Innovation Vs Assistant Commissionerst (Andhra Pradesh High Court)
The Andhra Pradesh High Court considered a writ petition filed by a registered dealer under the GST Act challenging an assessment order dated 17.04.2023 passed under Section 62 of the GST Act for the tax period February 2023.
Material Facts
The petitioner, a registered dealer under the GST Act, did not file the GSTR-3B return for the tax period of February 2023. Consequently, the first respondent issued a notice dated 25.03.2023 under Section 46 of the GST Act. As the petitioner did not respond to the notice, the respondent passed a best judgment assessment order dated 17.04.2023 under Section 62 of the GST Act.
Subsequently, on 21.06.2023, the petitioner filed the pending GSTR-3B return and remitted the applicable late fee and interest.
Procedural History
Aggrieved by the continued demand of tax under the assessment order despite filing the return with late fee and interest, the petitioner approached the Andhra Pradesh High Court by filing the present writ petition.
Legal Issue
Whether an assessment order passed under Section 62 of the GST Act survives after the registered person files a valid return along with the applicable late fee and interest, in view of Section 62(2) of the Act.
Statutory Provisions
- Section 46 of the GST Act
- Section 47 of the GST Act
- Section 50(1) of the GST Act
- Section 62 of the GST Act, particularly Section 62(2)
- Section 44 of the GST Act (as referred to in Section 62)
Petitioner’s Submissions
The petitioner contended that:
- The GSTR-3B return for the disputed period was filed on 21.06.2023.
- The applicable late fee and interest were also paid.
- Under Section 62(2) of the GST Act, once a valid return is furnished along with the required late fee and interest, the assessment order passed under Section 62 is deemed to have been withdrawn.
- Therefore, the authorities could not insist upon payment of the tax demanded under the assessment order dated 17.04.2023.
Respondents’ Submissions
The learned Government Pleader for Commercial Tax, on instructions, submitted that:
- The petitioner had filed the returns for the disputed tax period.
- The petitioner had also paid the additional late fee and interest.
- Appropriate orders may be passed in the writ petition.
Court’s Observations
The High Court observed that Section 62 empowers the Proper Officer to make a best judgment assessment where a registered person fails to furnish returns.
The Court further noted that Section 62(2) provides that where the registered person furnishes a valid return within sixty days of service of the assessment order under Section 62(1), the assessment order shall be deemed to have been withdrawn, while liability to pay interest under Section 50(1) and late fee under Section 47 continues.
The Court recorded that it was undisputed that the petitioner had filed the return for the relevant period along with the additional late fee and interest.
The Court also referred to the judgment of the Madras High Court (Madurai Bench) in W.P.(MD) No.18740 of 2024, wherein it was held that, in view of the amendment to Section 62(2), delay in filing GSTR-3B returns could be condoned and the assessment order would be deemed to have been withdrawn.
The Court further noted that it had earlier followed the Madras High Court decision in W.P.No.20705 of 2025 filed by M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh, extending the benefit under Section 62(2).
Findings
The High Court held that the benefit of Section 62(2) was available to the petitioner since the return had been filed along with the prescribed late fee and interest.
Directions
The assessment order dated 17.04.2023 for the tax period February 2023 was held to be deemed withdrawn and was set aside.
Final Decision
The writ petition was allowed. The assessment order dated 17.04.2023 passed under Section 62 of the GST Act was deemed to have been withdrawn and set aside. No order as to costs was made. Miscellaneous petitions, if any, were ordered to stand closed.
Cases Discussed
- M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh (Andhra Pradesh High Court), W.P.No.20705 of 2025
- W.P.(MD) No.18740 of 2024 (Madras High Court (Madurai Bench)), W.P.(MD) No.18740 of 2024
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner is registered dealer under GST Act vide GSTIN No.37BBYPP2492P1ZD on the rolls of State Tax Authorities. The petitioner did not file GSTR-3B returns for the period February, 2023. The 1st respondent issued notice dated 25.03.2023 under Section 46 of the GST Act and despite the same, the petitioner did not turn up. In those circumstances, the 1st respondent has passed assessment order dated 17.04.2023 by exercising power under Section 62 of the said Act.
2. It is the case of the petitioner that he filed GSTR-3B returns on 21.06.2023 by remitting late fee and interest. The counsel for the petitioner would further submit that despite filing returns along with late fee and interest, the respondent authorities are insisting to pay the tax demanded through order passed under Section 62 of the Act. He would further submit that once the return is filed, the order passed under Section 62 would be deemed to have been withdrawn as per Section 62 upon payment of necessary late fee and interest. He would further submit that, in view of the fact that the return has been already filed, the respondent authorities cannot insist to pay the tax demanded under the Impugned Assessment Order dated 17.04.2023.
3. Mr. R. Kalyan Chakravarthy, learned Government Pleader for Commercial Tax, on instructions, would submit that the petitioner has filed returns for the tax period under dispute along with additional late fee and interest. He would further submit that appropriate orders be passed in the instant writ petition.
4. As per Section 62 of GST Act the Proper Officer may proceed to assess the tax liability of the registered person to the best of his judgment taking into account all the relevant material, which is available or which he has gathered and issue an Assessment Order, within a period of five (05) years from the date specified under Section 44 for furnishing of annual return for the financial year to which the tax not paid relates to.
5. Further as per Section 62(2), if the registered person furnishes valid return within sixty (60) days of service of Assessment Order under sub section (1), the said Assessment Order shall be deemed to have been withdrawn, but the liability for payment of interest under sub section (1) of section 50 or for payment of late fee under section 47 shall continue.
6. In the case on hand, subsequent to the passing of assessment order under Section 62, the petitioner had filed return for the period under dispute along with additional late fee and interest on 21.06.2023 and the same is not disputed by the learned Government for Commercial Tax.
7. Further, similar issue has fallen for consideration before the Hon’ble High Court of Madras (Madurai Bench) in W.P.(MD) No.18740 of 2024 and after considering the same, the High Court of Madras had held that in view of the amendment to Section 62(2) of the Act, it would be appropriate to condone the delay in filing GSTR 3-B returns and consequently the Assessment Order would have to be deemed to be withdrawn.
8. Further, this Court following the judgment rendered by Hon’ble High Court of Madras, allowed W.P.No.20705 of 2025 filed by M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh. In such circumstances, the benefit under Section 62(2) of the Act has to be extended to the petitioner as well.
9. For the foregoing reasons, the assessment orders dated 17.04.2023 passed by the 1st respondent for the tax period February, 2023 is deemed to have been withdrawn and the same is set aside.
10. Accordingly, the writ petition is allowed. There shall be no order as to costs.
Miscellaneous petitions, if any, shall stand closed.
