Best Judgment Assessment u/s 62 cannot Survive Once GST Returns Filed: Andhra Pradesh HC [Read Order]

The Andhra Pradesh High Court held that best judgment assessment orders passed under Section 62 of the GST ( Goods and Services Tax ) Act, 2017 cannot continue once the registered person files the pending GSTR-3B returns.

M/s Munchester, a registered GST dealer, approached the High Court challenging multiple ex-parte best judgment assessment orders passed by the GST department for the tax period January 2023 to July 2023.

It also challenged the common endorsement dated 11.09.2024 issued by the appellate authority rejecting the appeals filed under Section 107 on the ground of limitation.

The assessee had failed to file GSTR-3B returns for the relevant period, despite issuance of notice under Section 46. After the reminders, the department passed separate orders under Section 62 on different dates.

The petitioner contended that after the assessment orders were passed, it subsequently filed the pending GSTR-3B returns and paid the applicable tax along with interest and late fee.

Therefore the benefit of Section 62(2) should be granted, treating the best judgment assessments as automatically withdrawn. The assessee also pointed out that it had filed statutory appeals, but the same were rejected as delayed.

The department, on the other side, opposed the petition by arguing that the petitioner had filed the returns beyond the earlier limitation of 120 days.

It said that the additional extended window of 60 days (introduced later) could not be applied to the petitioner.

However, the Justices R. Raghunandan Rao and T.C.D.Sekhar noted that similar issues had already been considered by the Madras High Court (Madurai Bench) and that the Andhra Pradesh High Court itself.

In all the rulings, the high court has granted the benefit of the amended Section 62(2), said the court.

Accordingly, the Court set aside the endorsement dated 11.09.2024, declared the best judgment assessment orders for January 2023 to July 2023 as withdrawn.

The court directed that all consequential recovery measures such as garnishee proceedings and bank account attachment must also be revoked. The writ petition was allowed with no order as to costs.

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