Saivijaya Enterprises vs. The Assistant Commissioner (State Taxes)

Facts

The petitioner, Saivijaya Enterprises, filed a writ petition challenging an assessment order dated January 30, 2024, issued under Section 62 of the GST Act by the Assistant Commissioner of State Taxes. The order was passed for the tax period of November 2023 due to the petitioner's failure to file its returns within the stipulated period. The petitioner contended that while the returns were filed late on December 21, 2024, all applicable interest and late fees, including additional late fees paid on September 25, 2026, had been paid. Despite this, the revenue authorities had not withdrawn the assessment order, compelling the petitioner to approach the High Court. The dispute involves a total late fee of INR 20 for CGST and INR 20 for SGST, along with additional late fees of INR 6,000 for CGST and INR 6,000 for SGST.

Held

The Court held that the assessment order passed under Section 62 of the GST Act is deemed to have been withdrawn. The reasoning was based on Section 62(2) of the GST Act, which stipulates that any order passed under Section 62 is deemed to be withdrawn once the necessary returns are filed within the stipulated period. In cases of delay, the registered person is required to pay the late fee. The Court noted that the petitioner had paid the necessary late fees and interest. Therefore, in accordance with Section 62(2), the assessment orders passed under Section 62 were deemed to have been withdrawn. The Court also referred to and followed the precedent set by the Hon'ble High Court of Madras in Writ Petition (MD) No.18740 of 2024 and this Court's own judgment in W.P.No.20705 of 2025, which held that the delay in filing returns could be condoned and the assessment order deemed withdrawn upon payment of late fees. Consequently, the Court directed that no steps for recovery could be initiated or continued for the taxes and dues raised under the impugned order of assessment.

Key Issues

1. Whether the assessment order passed under Section 62 of the GST Act is deemed to have been withdrawn in light of the petitioner filing the delayed returns and paying the stipulated late fees and interest, as per Section 62(2) of the GST Act? The petitioner argued that Section 62(2) of the GST Act provides that an order passed under Section 62 is deemed to be withdrawn if the registered person files the required returns within the stipulated period. The petitioner contended that even though there was a delay in filing the returns for November 2023, they subsequently filed the returns and paid the applicable late fees and interest. Therefore, the assessment order should be considered withdrawn. The petitioner relied on a judgment from the Madras High Court (Madurai Bench) in Writ Petition (MD) No.18740 of 2024 and a previous order of this Court in W.P.No.20705 of 2025, which extended the benefit of Section 62(2) in similar circumstances. The revenue, represented by the Assistant Government Pleader for Commercial Tax, did not record any specific arguments against the petitioner's contentions.