Brothers Engineering and Errectors Limited Vs State of Andhra Pradesh
Date: August 12, 2025
Subject Matter
Best Judgment Assessment Orders Deemed Withdrawn on Delayed Filing of Returns and Tax Payment
Summary
The petition is allowed, declaring that the best judgment assessment orders are deemed to have been withdrawn. This is because the petitioner subsequently filed returns and paid taxes within the extended period as per the amended Section 62 of the Goods and Services Tax Act, aligning with the spirit of the amendment and a similar ruling by the Madras High Court.
Summary of Facts and Dispute:
- Impugned Action: The 2nd respondent initiated recovery proceedings for dues mentioned in best judgment assessment orders passed for February – 2023 (on 01.04.2023) and March – 2023 to May – 2023 (on 19.07.2023), due to the petitioner's non-filing of GSTR-3A returns. The petitioner subsequently filed GSTR-3B forms and paid taxes for February – 2023 on 09.08.2023, and for March – 2023 to May – 2023 on 13.09.2023.
- Petitioner's Argument: The petitioner contended that under Section 62 of the G.S.T. Act (as amended), best judgment assessment orders are deemed withdrawn if the dealer files returns and pays taxes within 60 days from the order's receipt, extendable by another 60 days upon penalty payment. The petitioner argued that their payments fell within this extended period, and thus the assessment orders should be treated as withdrawn.
- Core Question of Law: Whether best judgment assessment orders passed for non-filing of returns are deemed withdrawn if the dealer subsequently files returns and pays taxes, considering the retrospective application and spirit of the amended Section 62 of the G.S.T. Act.
Key Legal Issues & Findings:
Interpretation and Application of Section 62 of the G.S.T. Act (Amendment)
The Court relied on the judgment of the Hon'ble High Court of Madras (Madurai Bench) in W.P.(MD) No.18740 of 2024, dated 02.08.2024, which considered a similar issue.
- Amendment to Section 62: The provisions of Section 62 of the G.S.T. Act were amended on 01.10.2023, extending the period for filing returns and paying taxes from 30 days to 60 days, with a further proviso for an additional 60-day extension upon payment of a Rs.100/- per day penalty.
- Spirit of Amendment: Despite the effective date of the amendment, the Court adopted the wholesome principle set out by the Madras High Court, which considered the
Ruling:
- Outcome: The best judgment assessment orders, dated 01.04.2023 and 19.07.2023, passed for the months of February – 2023 and March – 2023 to May – 2023, are deemed to have been withdrawn.
- Directions: Recovery proceedings initiated based on the withdrawn assessment orders should cease.
- Liberty: The petitioner remains liable to pay interest on account of any delayed payment of tax.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner is a registered person under the G.S.T. regime has not filed his returns for the months of February – 2023 to May – 2023. On account of the non-filing of the returns in GSTR-3A Forms, the best judgment assessment order was passed for the month of February – 2023, on 01.04.2023 and the best judgment assessment order was passed for the months of March – 2023 to May – 2023, on 19.07.2023.
2. The petitioner, after passing all these assessment orders, had filed GSTR-3B Forms and had also paid the necessary taxes, in relation to the month of February – 2023, on 09.08.2023 and in relation to the months of March – 2023 to May – 2023, on 13.09.2023.
3. Thereafter, the 2nd respondent, had initiated proceedings for recovery of the dues mentioned under the assessment orders specified above. Aggrieved by the same, the petitioner has approached this Court, by way of the present Writ Petition.
4. Sri Singam Srinivasa Rao, learned counsel for the petitioner, relying upon Section 62 of the Goods and Services Tax Act, 2017 (herein referred to as ‘the G.S.T. Act’), contends that, the best judgment assessment order, passed in the absence of returns, is deemed to be withdrawn once the dealer files the necessary Forms and pays the tax payable under the said returns within 60 days from the date of receipt of the Order and that, the proviso to Section 62 (2) of the G.S.T. Act, extends this period by another 60 days, if penalty of Rs.100/- per day of delay is paid. He would submit that, the payments made by the petitioner fall within this period and consequently, the Orders on the basis of which coercive steps are being taken for recovery of tax would have to be treated as withdrawn.
5. On the other hand, the learned Assistant Government Pleader for Commercial Tax appearing for the respondents, contends that the provisions of Section 62 were amended, on 01.10.2023, due to which the original period of 30 days granted for filing of the returns and payment of taxes, had been extended to 60 days and the proviso for extension of further 60 days was brought in only, on 01.10.2023. She would submit that, in such circumstances, the provisions of Section 62 of the G.S.T. Act, would not be available to the petitioner.
6. Learned counsel for the petitioner relies upon the judgment of the Hon’ble High Court of Madras (Madurai Bench), in W.P.(MD) No.18740 of 2024, dated 02.08.2024, wherein a similar issue was considered. The Hon’ble High Court of Madras, after considering similar submissions, had held that in view of the amendment to the Act and the spirit of the amendment, it would be appropriate to condone the delay in the filing of the GSTR-3B returns and consequently, the assessment orders would have to be deemed to be withdrawn.
7. Following the wholesome principle set out by the Hon’ble High Court of Madras, this Writ Petition is allowed, declaring that the assessment orders, dated 01.04.2023 & 19.07.2023 passed for the months of February – 2023 and March – 2023 to May – 2023 are deemed to have been withdrawn. However, the liability of the petitioner to pay interest on account of the delayed payment of tax, if any, would not be absolved.
There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.