Goodwill Insulations Vs Assistant Commissioner ST FAC (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court considered whether an assessment order passed under Section 62 of the GST Act could continue after the petitioner filed the delayed return and paid the applicable late fee. The writ petition was disposed of at the stage of admission with the consent of learned counsel appearing for both sides.
The petitioner had been served with an assessment order in Form GST ASMT-13 dated 21.06.2023 and a summary of the order dated 28.06.2023 for April 2023. The orders had been passed under Section 62 of the GST Act on the ground that the petitioner had not been filing its returns.
The petitioner submitted that it could not file the monthly return for April 2023 within the period stipulated under the statute. According to the submission, the return was subsequently filed on 19.08.2023 with a delay of 70 days and additional late fee was also paid. The petitioner stated that, despite payment of applicable interest and late fee on the delayed return, the first respondent had not withdrawn the assessment orders dated 21.06.2023/28.06.2023, leading to the filing of the writ petition.
The order records a table concerning April 2023 showing the impugned demand order dated 28.06.2023, filing of Form GSTR-3B, CGST and SGST late fee under Section 62(2), and additional late fee through Form DRC-03 dated 07.08.2026. The table records CGST and SGST amounts of Rs.675 each and additional CGST and SGST late fee of Rs.1,550 each. There is an apparent date inconsistency in the supplied order because paragraph 4 refers to filing of the April 2023 return on 19.08.2023, whereas the table records 07.08.2026 as the date of filing of Form GSTR-3B and also refers to Form DRC-03 dated 07.08.2026. This inconsistency is retained rather than reconciled.
The Court considered Section 62(2) of the GST Act. The provision deals with the consequence of filing a valid return after an assessment under Section 62(1), under which the assessment order is deemed to be withdrawn subject to the statutory liability relating to interest and late fee. TaxGuru’s coverage of Section 62 assessment under GST explains the statutory mechanism governing assessment of non-filers.
The Court held that Section 62(2) stipulates that an order passed under Section 62 would be deemed to have been withdrawn once the necessary returns are filed within the period stipulated under the provision. In the event of delay, late fee is required to be paid by the registered person seeking to file the returns.
In the present case, the Court found that the petitioner had paid the necessary late fee. In those circumstances, the Court held that the assessment orders passed under Section 62 were to be deemed to have been withdrawn.
The Court also relied upon the decision of the Madurai Bench of the Madras High Court in W.P.(MD) No.18740 of 2024. The Madras High Court, in that matter, considered the amendment to Section 62(2) and held that the delay in filing GSTR-3B could be condoned and consequently the assessment order under Section 62(1) could be deemed to have been withdrawn. TaxGuru has reported that decision as Madras HC Condones GSTR 3B Filing Delay, Rescinds Order under Section 62.
The Andhra Pradesh High Court further noted that it had followed the Madras High Court judgment in M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh, W.P.No.20705 of 2025. In that case, the benefit under Section 62(2) had been extended after consideration of the Madras High Court decision. The Court considered the same principle applicable to the petitioner in the present matter.
Accordingly, the writ petition was allowed. The assessment order under challenge, passed under Section 62 of the Act, was deemed to have been withdrawn. The Court further directed that no steps for recovery could be initiated or continued for recovery of the taxes and dues raised under that assessment order. No costs were awarded, and pending miscellaneous petitions, if any, were ordered to stand closed.
Cases Discussed
- Helmet House Vs Deputy State Tax Officer (Madras High Court) — The decision of the Madurai Bench of the Madras High Court in W.P.(MD) No.18740 of 2024 was relied upon for holding that, in view of the amendment to Section 62(2), delay in filing GSTR-3B could be condoned and the Section 62 assessment order could consequently be deemed to have been withdrawn.
- Brothers Engineering and Errectors Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court) — The Court referred to its earlier decision extending the benefit under Section 62(2) after following the Madras High Court judgment and applied the same benefit to the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard learned counsel for the petitioner. Also heard Mr. P.Soma Raju, learned Assistant Government Pleader for Commercial Tax representing respondents.
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 under Form GST ASMT-13 dated 21.06.2023 and Summary of the order dated 28.06.2023 for the month of April, 2023. The said orders had been passed under Section 62 of the GST Act on the ground that the petitioner had not been filing its returns.
4. Learned counsel for the petitioner made submissions with reference to the averments made in the writ affidavit and inter alia contended that the petitioner could not file monthly returns i.e., for the month of April, 2023 within the period stipulated under the statute. But, the same were filed on 19.08.2023 with 70 days delay and additional late fee was also paid 07.08.2026 (memo dated 10.08.2026 is filed to that effect). He further submits that though applicable interest and late fee is paid on the delayed return for the month of April, 2023, respondent No.1 have not withdrawn the Orders dated 21.06.2023/28.06.2023, as such, petitioner is constrained to file the writ petition.
5. The details of the date of demand order, date of filing of returns etc., areset 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) |
Additional late fee in Form DRC-03 dated 07.08.2026 |
|
|---|---|---|---|---|---|---|
| CGST | SGST | |||||
| April,
2023 |
28.06.2023 | 07.08.2026 | 675.00 | 675.00 | 1,550.00 | 1,550.00 |
| Total | 675.00 | 675.00 | 1,550.00 | 1,550.00 | ||
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.
Fu9. rther, 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. No costs. Miscellaneous petitions pending, if any, shall stand closed.
