East Coast Corporation Vs State of Andhra Pradesh (Andhra Pradesh High Court)
The Andhra Pradesh High Court allowed the writ petition challenging an assessment order passed under Section 62 of the GST Act for July 2023 on the ground that the petitioner had not filed returns. The petitioner submitted that it had subsequently filed GSTR-3B for the relevant period along with the prescribed late fee and that the turnover was exempt, resulting in no tax or interest liability.
The assessment order was dated 16.09.2023, while the GSTR-3B return was filed on 22.02.2024. The petitioner paid CGST and SGST late fees of ₹4,650 each.
The Court noted that Section 62(2) provides that an order passed under Section 62 would be deemed to have been withdrawn once the necessary returns are filed within the stipulated period. Where there is delay, the registered person is required to pay the applicable late fee. Since the petitioner had paid the necessary late fee, the Court held that the assessment order was required to be deemed withdrawn.
The Court also noted that the same issue had been considered by the Madras High Court (Madurai Bench) in W.P. (MD) No.18740 of 2024, where, considering the amendment to Section 62(2), the delay in filing GSTR-3B was condoned and the assessment order was held to be deemed withdrawn. The Andhra Pradesh High Court had also followed that judgment in W.P. No.20705 of 2025 filed by M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh.
Accordingly, the High Court allowed the writ petition, deemed the Section 62 assessment order withdrawn, and directed that no recovery steps could be initiated or continued for taxes and dues raised under that order. The attachments were also directed to stand withdrawn. No costs were awarded.
Cases Discussed
- M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh (Andhra Pradesh High Court), W.P.No.20705 of 2025
- Writ Petition (MD) No.18740 of 2024 (Madras High Court, Madurai Bench)
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard learned counsel for the petitioner. Also heard Mr. S.A.V.Sai Kumar, learned Assistant Government Pleader for Commercial Tax representing respondent Nos.1 to 4.
2. With the consent of learned counsel on both sides, writ petition is disposed of, at the stage of admission.
3. The petitioner was served with order of assessment for the month of July-2023. The Assessment Order had been passed under Section 62 of the GST Act on the ground that the petitioner had not been filing its returns.
4. Petitioner has approached this Court with the contention that the respondents are seeking to recover the amount demanded under the said order of assessment despite the fact that the petitioner had filed its returns, in Form GSTR 3B for the relevant period along with late fee. It is contended that no tax or interest was payable as the returns related to exempted turnovers.
5. The details of the date of demand order, date of filing of returns etc., are set out in the table below:
| Month | Date of impugned Demand Order |
Date of filing of Form GSTR 3B |
CGST late fee u/s 62(2) |
SGST Late fees u/s.62(2) |
| July-2023 | 16.09.2023 | 22.02.2024 | 4650.00 | 4650.00 |
| 4650.00 | 4650.00 | |||
6. Section 62(2) of the GST Act stipulates that any order passed under Section 62, would be deemed to have been withdrawn once necessary returns are filed within the period stipulated under the said provision. In the event of delay, late fee is required to be paid by the registered person who seeks to file the said returns.
7. In the present case, petitioner is said to have paid the necessary late fee. In such circumstances, it would have to be deemed that the orders, detailed above, passed under Section 62 of the GST Act are deemed to have been withdrawn.
8. Further, similar issue has fallen for consideration before the Hon’ble High Court of Madras (Madurai Bench) in Writ Petition (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.
9. 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.
10. Accordingly, Writ Petition is allowed. Assessment Order under challenge passed under Section 62 of the Act is deemed to have been withdrawn and no steps for recovery can be initiated or continued for recovery of the taxes and dues raised under the said order of assessment. In view of withdrawal of above assessment proceedings, all the attachments shall also stand withdrawn. No costs. Miscellaneous petitions pending, if any, shall stand closed.
