HC Holds Section 62 GST Assessment Void After Return Filing

The petitioner, M/s Andra Canteen Private Limited, was subjected to two best judgement assessment orders dated 05.12.2024 under Section 62 of the GST Act for the periods July 2024 and September 2024. Subsequently, the department issued a demand notice and a garnishee notice seeking recovery of tax amounts.

The petitioner approached the High Court, contending that it had already filed the pending returns for both periods, July 2024 on 22.03.2025 and September 2024 on 19.05.2025, along with payment of tax, interest, and late fee. Despite this, recovery proceedings were initiated. The Revenue, on instructions, acknowledged before the Court that the entire dues had been cleared.

Main Issue: Whether assessment orders passed under Section 62 of the GST Act can continue to operate once the taxpayer files returns and pays the entire tax due, along with applicable interest and late fees.

HC’s Decision: The High Court allowed the writ petition and held that once the petitioner had filed the returns and discharged the entire tax liability along with interest and late fee, the assessment order passed under Section 62 would automatically stand withdrawn in terms of Section 62(2) of the GST Act.

The Court observed that the continuation of recovery proceedings, including the garnishee notice, was unjustified after full compliance by the assessee. Therefore, it declared that the assessment order for September 2024 shall be deemed withdrawn and restrained the authorities from initiating or continuing any coercive recovery action.

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