Wednesday, January 21, 2026

Where returns along with tax, interest and late fee are filed subsequent to best judgment assessment under Section 62 of the GST Act, the assessment orders shall be deemed to have been withdrawn under Section 62(2), even if the returns are filed beyond the original period, in view of the beneficial amendment extending time; consequently, rejection of appeals under Section 107 on limitation and all recovery proceedings cannot be sustained.

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Constitution of India — Article 226

Goods and Services Tax Acts, 2017 (CGST/APGST)
Sections 46, 62, 62(2), 107

A. Best judgment assessment — Section 62 GST Act — Filing of returns after assessment — Effect

Where assessment orders are passed under Section 62 due to non-filing of GSTR-3B returns, and the registered person subsequently files returns along with tax, interest and late fee, such assessment orders shall be deemed to have been withdrawn under Section 62(2) of the GST Act.
(Paras 1–3, 7)

B. Amendment to Section 62(2) — Extension of time — Beneficial interpretation

The amendment extending the time limit under Section 62(2) enabling filing of returns beyond 120 days must be given beneficial application, particularly where returns have in fact been filed and tax liability discharged.
(Paras 4–6)

C. Appeals under Section 107 — Rejection on limitation — Effect of deemed withdrawal

When assessment orders under Section 62 stand deemed to be withdrawn, rejection of appeals under Section 107 on the ground of limitation becomes unsustainable.
(Paras 3, 7)

D. Binding precedent — Judicial discipline

High Court of Andhra Pradesh, following the judgment of the Madras High Court (Madurai Bench) in WP (MD) No.18740 of 2024 and its own decision in WP No.20705 of 2025, extended the same benefit to the petitioner under Section 62(2) of the Act.
(Paras 5–6)

E. Recovery proceedings — Garnishee orders — Bank attachment

Once assessment orders are deemed withdrawn under Section 62(2), all consequential recovery actions, including garnishee notices and bank account attachments, are liable to be revoked.
(Para 7)

FINAL ORDER

Assessment orders dated 12-05-2023, 31-08-2023, 05-09-2023 and 15-09-2023 deemed withdrawn.
Impugned endorsement dated 11-09-2024 set aside.
All recovery proceedings revoked.
Writ petition allowed.
No costs.
(Paras 7–8)

ANALYSIS OF FACTS

1. Status of petitioner

• Petitioner is a registered dealer under GST
• GSTIN No. 37AIZPT1529N2Z5
• On the rolls of the 3rd respondent

2. Default period

• GSTR-3B returns not filed for:

January 2023 to July 2023

3. Action by department

• Notice issued under Section 46 GST Act
• No response by petitioner
• Best judgment assessments passed under Section 62

Assessment dates:

Period	Order Date
January 2023	12-05-2023
February 2023	31-08-2023
March–June 2023	05-09-2023
July 2023	15-09-2023

4. Subsequent compliance

Petitioner thereafter:

• Filed all pending GSTR-3B returns
• Paid:

tax
interest
late fee

Returns were filed on:

• 13-07-2023
• 03-02-2024
• 05-02-2024

(Para 2)

5. Appeals

• Appeals filed under Section 107 GST Act
• Rejected by appellate authority on 11-09-2024
• Rejection solely on limitation ground

6. Writ petition

Challenged:

• Assessment orders under Section 62
• Appellate endorsement dated 11-09-2024
• Recovery proceedings including bank attachment

ANALYSIS OF LAW

1. Section 62 GST Act — Legal effect

Section 62 enables best judgment assessment when returns are not filed.

Section 62(2) provides:

if the registered person furnishes valid return within prescribed time, the assessment order shall be deemed to have been withdrawn.

2. Dispute on limitation

Revenue contended:

• Returns filed beyond original 120 days
• Extension of additional 60 days came into force only on 01-10-2023
• Hence petitioner not entitled to benefit

3. Court’s reasoning

The Division Bench held:

• Amendment to Section 62(2) is beneficial
• Identical issue already decided by:

Madras High Court (Madurai Bench)
Andhra Pradesh High Court in WP No.20705 of 2025

Judicial discipline requires uniform application.

(Paras 5–6)

4. Effect on appeals under Section 107

Once assessment orders themselves stand withdrawn:

• Appeal rejection on limitation becomes irrelevant
• Appellate endorsement cannot survive

(Para 7)

5. Recovery proceedings

Any recovery:

• Garnishee notices
• Bank account attachments

are consequential to assessment orders and must fall once the assessments are deemed withdrawn.