Tvl.Bernard Karuthudaiyan vs. The Deputy State Tax Officer - 2
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The petitioner, Tvl. Bernard Karuthudaiyan, failed to file their GST returns for October 2024. The respondent, The Deputy State Tax Officer - 2, Nagercoil, issued a GSTR 3A notice and subsequently passed a best judgment assessment order under Section 62 of the TNGST Act, 2017, on December 23, 2024. The petitioner later filed their returns belatedly on August 18, 2025. The petitioner challenged the assessment order as cryptic, non-speaking, illegal, arbitrary, and without jurisdiction via a writ petition before the Madurai Bench of the Madras High Court.
Held
The Court held that the best judgment assessment order passed under Section 62(1) of the TNGST Act, 2017, is deemed to have been withdrawn upon the filing of a valid return, irrespective of whether it is filed within the thirty-day period prescribed in Section 62(2). The Court reasoned that the statutory mandate in Section 62(2) clearly states that if a registered person furnishes a valid return within thirty days of the service of the assessment order, the assessment order shall be deemed to have been withdrawn. The Court further noted that while courts have held the time limit for filing late returns to be non-mandatory, the core principle of Section 62(2) is the withdrawal of the best judgment assessment upon the filing of a return. Consequently, the impugned order dated 23.12.2024 was declared automatically withdrawn. The respondent was granted liberty to verify the returns filed by the petitioner and, if any short payment was found, to issue a fresh show cause notice. Any amount already collected was to be adjusted against future liabilities, and the attachment on the petitioner's bank account was to be lifted.
Key Issues
1. Whether the best judgment assessment order passed under Section 62(1) of the TNGST Act, 2017, stands automatically withdrawn upon the filing of a valid return within thirty days of the service of the assessment order, as stipulated in Section 62(2) of the Act, even if the return is filed beyond the prescribed thirty-day period? Petitioner's Contention: The petitioner argued that once a belated return is filed, the best judgment assessment order is deemed to have been withdrawn, relying on the statutory mandate of Section 62(2) of the Act. They contended that while the statute prescribes a time limit for filing late returns, courts have held this limit to be non-mandatory. Respondent's Contention: The judgment records no specific argument from the respondent regarding the interpretation of Section 62(2) or the effect of filing a belated return.
Sections Cited
Section 62, Section 39, Section 45, Section 46, Section 44, Section 50, Section 47, Section 73, Section 74
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Before: and
Heard both sides. 2.The writ petitioner is an assessee coming under the juri iction of the respondent. The petitioner failed to file their returns for the month of October 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. 2/6 https://www.mhc.tn.gov.in/judis (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 23.12.2024. Whileso, the petitioner herein filed their returns belatedly on 18.08.2025. 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. 3/6 https://www.mhc.tn.gov.in/judis
With the aforesaid liberty to the respondent, this writ petition is allowed. No costs. Consequently, connected miscellaneous petitions are closed.
2025 NCC : Yes/No Index : Yes / No Internet : Yes/ No ias To: The Deputy State Tax Officer - 2 Nagercoil - Rural Assessment Circle Commercial Taxes Buildings Nagercoil. 4/6 https://www.mhc.tn.gov.in/judis 5/6 https://www.mhc.tn.gov.in/judis G.R.SWAMINATHAN, J. ias
2025 (2/4) 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.