Tvl. Bernard Karuthudaiyan Vs Deputy State Tax Officer
Date: November 11, 2025
Subject Matter
GST Best-Judgement Assessment Order Deemed Withdrawn Even Upon Belated Return Filing
Summary
The court has declared that the impugned best judgment assessment order passed against the petitioner on October 16, 2024, is deemed to have been automatically withdrawn. This decision is based on the statutory mandate of Section 62(2) of the Tamil Nadu Goods and Service Tax Act, 2017 (TNGST Act).
Facts and Procedural Timeline:
Default: The petitioner, a registered assessee, failed to file the GST return for the month of August 2024.
Action by Revenue: The Proper Officer issued a GSTR 3A notice (notice to non-filers) and subsequently passed an ex parte best judgment assessment order on October 16, 2024, under Section 62(1).
Petitioner's Compliance: The petitioner filed their belated return on November 21, 2024.
Ruling:
The court allowed the writ petition and confirmed that the assessment order is deemed withdrawn.
Deemed Withdrawal (Section 62(2)): The court recognized that while Section 62(2) prescribes a 30-day time limit for filing the return after the assessment order, prior court decisions have held that this time limit is not mandatory. Once a valid late return is filed, the best judgment assessment order is deemed to have been withdrawn by operation of law.
Lifting of Attachment: Any attachment made on the petitioner's bank account shall stand lifted automatically.
Adjustment of Collected Amounts: Any amount already collected from the petitioner shall be adjusted against the petitioner’s future liabilities.
Liberty to Revenue: The respondent is granted liberty to verify the returns filed by the petitioner. If any short-payment is found, the respondent may issue a fresh show cause notice making an appropriate demand.
Continuing Liability: The petitioner's liability for payment of interest under Section 50(1) and late fee under Section 47 shall continue.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard both sides.
2.The writ petitioner is an assessee coming under the jurisdiction of the respondent. The petitioner failed to file their returns for the month of August 2024. Section 62 of the Tamil Nadu Goods and Service Tax Act, 2017 reads as follows:-
“62. Assessment of non-filers of returns. (1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates.
(2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue.”
Invoking the said provision, GSTR 3A notice was issued. Thereafter, the impugned order was passed on 16.10.2024. Whileso, the petitioner herein filed their returns belatedly on 21.11.2024. Though the statute prescribes time limit of 60 days for filing the late returns, Courts have held that this time limit is not mandatory. Once the late return has been filed, the order making best judgement assessment is deemed to have been withdrawn. Applying the statutory mandate set out in Section 62(2) of the Act, it is declared that the impugned order stands automatically withdrawn. It is open to the respondent herein to verify the returns filed by the writ petitioner. If there is any short-payment, fresh show cause notice can be issued making appropriate demand from the assessee. The amount already collected from the writ petitioner shall be adjusted against the petitioner’s future liabilities. The attachment made on the writ petitioner’s bank account shall stand lifted automatically.
3. With the aforesaid liberty to the respondent, this writ petition is allowed. No costs. Consequently, connected miscellaneous petitions are closed.