The Andhra Pradesh High Court has ruled that a dealer who files a pending GSTR-3B return, along with the applicable late fee and interest, is eligible for the withdrawal of a best-judgment assessment under Section 62(2) of the GST Act.
PSD Services and Innovations was registered under the GST law but did not file its GSTR-3B return for February 2023. A notice had been issued by the Assistant Commissioner dated 25 March 2023 u/s 46 of the GST Act. As the applicant did not answer, the officer passed a best judgment assessment order on 17 April 2023 by exercising powers u/s 62.
Subsequently, the applicant filed the GSTR-3B return on 21 June 2023 and paid the applicable late fee and interest. Its counsel claimed that once the valid return was submitted, the assessment order passed u/s 62 needs to be considered as withdrawn. The department could not continue demanding the tax fixed via the best-judgment assessment.
The Government Pleader for Commercial Tax affirmed that the applicant had submitted the return for the disputed period, including late fee and interest. He requested the Court to pass an appropriate order.
The Division Bench included Justice Ninala Jayasurya and Justice T.C.D. Sekhar stated that Section 62 allows the proper officer to make a best-judgment assessment when a registered person did not submit a return.
Read Also: A Guide to Assessment U/S 62 for Non-Filers GST Returns
According to Section 62(2), when a valid return is provided within the allowable duration, the assessment order is considered to have been withdrawn. However, the liability of the taxpayer to pay interest u/s 50 and late fee u/s 47 continues.
The Court placed reliance on a decision of the Madurai Bench of the Madras High Court in W.P.(MD) No.18740 of 2024. In that case, the Madras High Court acknowledged the revision to Section 62(2), condoned the delay in filing GSTR-3B and deemed the assessment order as withdrawn.
Also, the Bench referred to its earlier decision in Brothers Engineering and Errectors Limited, where a similar benefit was provided. The HC applied the same reason and said that the applicant was qualified for relief u/s 62(2).
Similar: Amendment in GST Section 62(2), the Madras HC Forgives GSTR 3B Return Filing Delay
The assessment order dated 17 April 2023 for February 2023 was considered to have been withdrawn and was quashed. The writ petition was permitted without costs.
| Case Title | PSD Services and Innovations Vs The Assistant Commissioner (St) |
| Case No. | WRIT PETITION NO: 19015/2026 |
| For Petitioner | Anil Kumar Bezawada |
| For Respondent | GP for Commercial Tax |
| Andhra Pradesh High Court | Read Order |
