S.62 CGST Act | Filing Pending Returns Automatically Withdraws Best-Judgment Assessment: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that a best judgment assessment passed under Section 62 of the Central Goods and Services Tax Act, 2017 stands deemed withdrawn once the registered dealer files the pending returns along with payment of tax and applicable late fee, even if such returns are filed beyond the initially prescribed period. A Division Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was hearing a batch of writ petitions filed by the assessee, Indubaala Enterprises LLP, assailing multiple assessment orders on the ground of non-filing of GSTR-3B returns. Best Judgment Assessment is a statutory assessment made by the tax authority when a taxpayer fails to comply, and the authority is forced to assess tax based on its own estimation, not on the taxpayer's actual returns. Section 62 of the CGST Act provides for best judgment assessment in case of non-filing of returns, which stands automatically withdrawn upon filing of returns with payment of tax and late fee within the prescribed time. The assessee had challenged the best judgment assessment orders passed in Form GST ASMT-13, along with consequential demand orders in Form GST DRC-07, arguing that the assessment was made on a notional turnover without granting personal hearing and despite the subsequent filing of returns along with payment of late fee. The assessee also argued that in terms of Section 62 of the GST Act, once returns are filed within 120 days or even beyond the said period upon payment of late fee as permitted under the Act and Rules, the best judgment assessment would stand automatically withdrawn. The Revenue argued that the assessment orders had already been passed and recovery proceedings had been initiated for the amounts assessed, including interest and penalty. The Bench remarked that all the impugned assessment orders had been passed solely on the ground that the returns were not filed and that the petitioner had subsequently filed the GSTR-3B returns along with late fee for all the relevant periods. The Court relied upon its earlier decision in Brothers Engineering and Ereectors Ltd. v. State of Andhra Pradesh [(2025) 34 Centax 39 (A.P.)], which had followed the Madras High Court judgment in Helmet House v. Deputy State Tax Officer [(2024) 23 Centax 57 (Mad.)], holding that best judgment assessments under Section 62 would be deemed withdrawn once returns are filed as permitted under law. Applying the said principle, the Bench held that the assessment orders passed under Section 62 of the GST Act were liable to be treated as non-existent in law. Accordingly, the High Court allowed the writ petitions, holding that the assessment orders stood deemed withdrawn and that no recovery proceedings could be initiated or continued pursuant to such orders. Case Title: Indubaala Enterprises LLP v. Deputy Commissioner (ST) & Ors. Case No: W.P. Nos. 31323, 31324 & 31330 of 2025 Appearance for Petitioner/Assessee: Anil Kumar Bezawada Appearance for Respondnet: GP for Commercial TaxCitation: 2025 LiveLaw (AP) 177 Click Here To Read/Download Order

S.62 CGST Act | Filing Pending Returns Automatically Withdraws Best-Judgment Assessment: Andhra Pradesh High Court

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S.62 CGST Act | Filing Pending Returns Automatically Withdraws Best-Judgment Assessment: Andhra Pradesh High Court

Rajnandini Dutta

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