Best Judgment Assessment Stands Deemed Withdrawn Upon Late Return Filing with Tax, Interest, and Late Fee

By | September 3, 2026
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Best Judgment Assessment Stands Deemed Withdrawn Upon Late Return Filing with Tax, Interest, and Late Fee
Issue
Whether a best judgment assessment order passed under Section 62 for non-filing of returns stands deemed withdrawn when the assessee subsequently files the return and pays the entire tax, interest, and late fee beyond the thirty-day period from the service of the assessment order.
Facts
  • Assessee & Period: The petitioner is a proprietary concern registered under the APGST Act, relating to the period of January 2023.
  • Non-Filing & Best Judgment Order: The petitioner failed to file its GSTR-3B return within the prescribed time, leading Respondent No. 1 to pass a best judgment assessment order under Section 62 raising a GST demand with interest.
  • Subsequent Compliance: The petitioner subsequently filed both GSTR-1 and GSTR-3B returns and discharged the entire tax liability along with applicable interest and late fees.
  • Delayed Filing: The filing of returns and payment of dues took place beyond the statutory period of thirty days from the service of the best judgment assessment order.
Decision
  • Held, yes; although the petitioner did not furnish the return within thirty days of the assessment order, the entire tax, interest, and late fees were duly paid while filing the return.
  • Following the binding Division Bench precedent in Brothers Engineering and Errectors Ltd. v. State of Andhra Pradesh, best judgment assessment orders stand deemed to be withdrawn once returns are filed—whether within the prescribed time or beyond it—along with payment of late fees.
  • Consequently, the assessment order dated 17.04.2023 stands deemed withdrawn in law.
  • Revenue authorities cannot initiate or continue any recovery proceedings for tax and dues arising out of the withdrawn assessment order [Para 10].
  • Verdict: Decided in favour of the assessee.
Key Takeaways
  • Deemed Withdrawal of Best Judgment Assessment: Payment of full tax, interest, and late fees alongside return submission invalidates the best judgment assessment, even if filed after the initial 30-day window.
  • Acceptance of Late Fee Cures Delay: When the GST portal accepts the return filed beyond thirty days upon payment of prescribed late fees under Section 47, the benefit of deemed withdrawal under Section 62(2) automatically applies.
  • Cessation of Recovery Proceedings: Once a Section 62 assessment order stands deemed withdrawn by operation of law, any pending or initiated recovery actions based on that order become legally unmaintainable.
HIGH COURT OF ANDHRA PRADESH
Siva Electricals
v.
Assistant Commissioner of State Tax
Ninala Jayasurya and T.C.D. Sekhar, JJ.
WRIT PETITION No. 17618 of 2026†
JULY  3, 2026
Anil Kumar Bezawada for the Petitioner.
ORDER
Ninala Jayasurya, J. – Heard learned counsel for the petitioner, who appeared through online. Also heard Mr. R Kalyan Chakravarthy, learned Government Pleader for Commercial Tax, representing respondent Nos.1 and 2.
2. The present writ petition is filed seeking to quash the proceedings of respondent No.1 dated 17.04.2023 and demand of Rs.12,61,060/- towards GST along with interest on various grounds.
3. The petitioner, a Proprietary concern, registered under the A.P.G.S.T Act, 2017 vide GSTIN:37DCWPS0612F2ZA could not file GSTR-3B return for January, 2023 within the statutory time limit specified under Section 39. Under the said circumstances, respondent No.1 passed Assessment Order dated 17.04.2023 in question under Section 62 of CGST Act, 2017. Petitioner filed GSTR-1 Statement on 11.05.2023 and also filed GSTR-3B return on 29.05.2023 by paying the entire tax along with applicable late fees.
4. Learned counsel for the petitioner inter alia submits that Section 62(2) of CGST, 2017 which provides for filing of return within thirty (30) days from the date of service of Assessment Order was amended vide Notification No.28/2023 – Central Tax dated 31.07.2023 with effect from 01.10.2023 whereby the time limit of thirty days was increased to sixty days. He submits that as the petitioner filed GSTR-3B return of January, 2023 within sixty days from the date of issuance of Assessment Order in question by paying the interest and late fee, the writ petition deserves to be allowed in terms of the orders of this Court in Brothers Engineering and Errectors Ltd. v. State of Andhra Pradesh 111 GST 611/101 GSTL 341 (Andhra Pradesh)/(2025) 34 Centax 39 (A.P.), etc. He also places reliance on the latest decision of this Court Indubaala Enterprises LLP v. Deputy Commissioner [W.P. Nos. 31323, 31324 and 31330 of 2025, dated 26-11-2025] & etc., and seeks to allow the writ petition.
5. On the other hand, learned Government Pleader for Commercial Tax while refuting the said submissions contends that as the petitioner has not filed the return within the extended time as contemplated under Section 62(2) of CGST Act, it is not entitled for the relief sought for.
6. This Court has considered the submissions made and perused the material on record.
7. Admittedly, petitioner failed to submit the return for January, 2023 within thirty days from the date of Assessment Order. However, subsequently it not only paid the tax liability but also paid late fee for the delay in payment of tax. It is also not disputed that while filing return for the month of January, 2023, interest was paid.
8. In similar circumstances, a Division Bench of this Court in Brothers Engineering and Errectors Ltd. (supra), following earlier judgments of the Hon’ble High Court of Madras in Helmet House v. Deputy State Tax Officer-1, Madurai [2024]  (Madras)/(2024) 23 Centax 57 (Mad.) held that the orders of assessment would be deemed to have been withdrawn, once returns had been filed within the prescribed time or beyond prescribed time along with payment of late fee.
9. In the present case, the said decision would apply.
10. Accordingly, this Writ Petition is allowed declaring that the Assessment Order dated 17.04.2023 passed under Section 62 of CGST Act is deemed to have been withdrawn and no steps for recovery can be initiated or continued for recovery of the tax and dues raised under the aforesaid order of assessment. No costs. Miscellaneous petitions pending, if any, shall stand closed.