M/S. Leela Krishna Paints vs. The Assistant Commissioner (St)-Ii

Held

The Court held that the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn.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was based on Section 62(2) of the GST Act, which stipulates that any order passed under Section 62 would be deemed withdrawn once the necessary returns are filed within the stipulated period, with late fees payable in case of delay. The Court noted that the petitioner had paid the necessary late fee and interest for the delayed return for September 2025. The Court further relied on a judgment of the High Court of Madras (Madurai Bench) in Writ Petition (MD) No.18740 of 2024, which held that in view of the amendment to Section 62(2) of the Act, it would be appropriate to condone the delay in filing GSTR 3-B returns and consequently the Assessment Order would have to be deemed to be withdrawn. This Court also followed its own previous judgment in W.P.No.20705 of 2025 filed by M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh. Therefore, the benefit under Section 62(2) of the Act was extended to the petitioner. The operative direction was that the assessment order under challenge is deemed to have been withdrawn, and no steps for recovery can be initiated or continued for the taxes and dues raised under the said order.

Facts

The petitioner, M/s. Leela Krishna Paints, filed a writ petition challenging assessment orders issued under Section 62 of the GST Act for the tax period of September 2025. These orders, dated November 12, 2025 (Form GST ASMT-13) and November 13, 2025 (Form GST DRC-07), were passed due to the petitioner's failure to file returns within the stipulated period. The petitioner contended that while the returns were filed late on April 28, 2026, with a delay of 106 days, the applicable interest and late fees were paid on October 9, 2026. Despite payment of these dues, the respondent authorities had not withdrawn the assessment orders, compelling the petitioner to approach the High Court.

Key Issues

1. Whether the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn in light of the petitioner filing the delayed returns and paying the requisite late fees and interest, as stipulated under Section 62(2) of the GST Act? Petitioner's arguments: The petitioner argued that Section 62(2) of the GST Act provides that an order passed under Section 62 is deemed withdrawn upon filing the necessary returns. They contended that since they have filed the returns for September 2025 and paid the applicable late fee and interest, the assessment orders should be considered withdrawn. They relied on the averments in their writ affidavit and the fact that they paid the additional late fee on 09.10.2026. They also cited a precedent from the High Court of Madras (Madurai Bench) in Writ Petition (MD) No.18740 of 2024, which held that the assessment order would be deemed withdrawn in view of the amendment to Section 62(2) of the Act. Respondents' arguments: The learned Assistant Government Pleader for Commercial Tax represented the respondents. The judgment does not explicitly record specific arguments made by the respondents, but it notes that the writ petition was disposed of with the consent of learned counsel on both sides.