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 pursuant to best judgment assessment orders passed under the GST law due to non-filing of returns. The petitioner, a registered person under the GST regime, had failed to file returns for the months from February 2023 to May 2023. As a result, best judgment assessment orders were passed for February 2023 on 01.04.2023 and for March to May 2023 on 19.07.2023. Subsequently, the petitioner filed the pending GSTR-3B returns and paid the corresponding tax—on 09.08.2023 for February 2023 and on 13.09.2023 for March to May 2023.
Despite the filing of returns and payment of tax, recovery proceedings were initiated based on the assessment orders, prompting the petitioner to approach the High Court. The petitioner relied on Section 62 of the GST Act, contending that once returns are filed and taxes paid within the prescribed time, the best judgment assessment orders are deemed to be withdrawn. It was argued that the payments were made within the permissible period, including the extended period contemplated under the proviso to Section 62(2).
The State opposed the plea, arguing that the extended timelines under Section 62 became applicable only after the amendment effective from 01.10.2023 and, therefore, could not benefit the petitioner. The Court examined the rival submissions and took note of a judgment of the Madras High Court, which had considered a similar issue and adopted a liberal approach in light of the amendment and its underlying intent.
