K Sandeep Naidu Vs Assistant Commissioner ST (Andhra Pradesh High Court)
SEO Title: GSTR-3B Filing Makes Section 62 GST Assessment Deemed Withdrawn: Andhra Pradesh HC
Summary: The Andhra Pradesh High Court allowed the writ petition filed by K Sandeep Naidu, a works contractor and sole proprietorship concern, concerning assessment and recovery proceedings for the tax period 2020-21. The assessment order had been passed under Section 73(9) of the GST Act on the ground that the petitioner had not been filing returns. The petitioner contended that the relevant returns in Form GSTR-3B had subsequently been filed along with late fee and that no tax or interest was payable because the returns related to exempted turnovers.
The record showed that for October 2020, the impugned demand order was dated 20.11.2020 and Form GSTR-3B was filed on 22.01.2021 with CGST and SGST late fee of Rs.310 each. For January 2021, the demand order was dated 20.02.2021 and Form GSTR-3B was filed on 18.03.2021, with no late fee shown. The Court considered Section 62(2) of the GST Act, which stipulates that an order passed under Section 62 is deemed withdrawn once the necessary returns are filed within the period stipulated under the provision, while in the event of delay the registered person is required to pay late fee. Since the petitioner was stated to have paid the necessary late fee, the Court held that the assessment orders detailed in the case were deemed to have been withdrawn.
The Court also referred to the Madras High Court (Madurai Bench) decision in Writ Petition (MD) No.18740 of 2024, where, considering the amendment to Section 62(2), delay in filing GSTR-3B returns was condoned and the assessment order was consequently treated as deemed withdrawn. The Andhra Pradesh High Court further noted that it had followed that Madras High Court judgment in M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh, W.P.No.20705 of 2025.
Applying the same benefit under Section 62(2), the High Court allowed the writ petition. It held that the assessment order under challenge, passed under Section 73(9), was deemed withdrawn and that no steps for recovery could be initiated or continued for taxes and dues raised under that assessment order. As a consequence of withdrawal of the assessment proceedings, all attachments were also directed to stand withdrawn. No costs were awarded and pending miscellaneous petitions, if any, were closed.
Cases Discussed
- Helmet House Vs Deputy State Tax Officer (Madras High Court) – Writ Petition (MD) No.18740 of 2024; relied upon for condonation of delay in filing GSTR-3B and consequential deemed withdrawal of the assessment order under Section 62(2).
- Brothers Engineering and Errectors Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court) – W.P.No.20705 of 2025; followed the Madras High Court judgment and extended the benefit under Section 62(2).
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard Mr. P.V.Sai Rajesh, learned arguing counsel for the petitioner. Also heard Mr. S.A.V.Sai Kumar, learned Assistant Government Pleader for Commercial Tax representing respondent Nos.1 and 2.
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 tax period 2020-21. The Assessment Order had been passed under Section 73(9) 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) |
|---|---|---|---|---|
| October-2020 | 20.11.2020 | 22.01.2021 | 310.00 | 310.00 |
| January-2021 | 20.02.2021 | 18.03.2021 | 0.00 | 0.00 |
| 310.00 | 310.00 | |||
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 73(9) 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.
