M/S. Sayanas Constructions vs. The Assistant Commissioner (St)

Held

The Court held that the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn. This decision was based on Section 62(2) of the GST Act, which stipulates that such orders are automatically withdrawn upon the filing of the necessary returns. The Court noted that the petitioner had indeed filed the returns for December 2022 and paid the applicable late fees and interest. The Court further relied on the precedent set by the High Court of Madras in W.P. (MD) No. 18740 of 2024, which held that in view of the amendment to Section 62(2), it would be appropriate to condone the delay in filing returns and deem the assessment order withdrawn. This Court also followed its own judgment in W.P. No. 20705 of 2025, extending the benefit of Section 62(2) to the petitioner. Consequently, the Court directed that no steps for recovery of taxes and dues raised under the assessment order could be initiated or continued.

Facts

The petitioner, M/s. Sayanas Constructions, filed a writ petition challenging assessment orders issued under Section 62 of the GST Act. These orders, dated March 1, 2023 (Form GST ASMT-13) and February 1, 2023 (Form GST DRC-07), were passed for the tax period of December 2022 due to the petitioner's failure to file returns within the stipulated time. The petitioner admitted to filing the returns late, on June 16, 2023, and paid the applicable interest and late fees, including an additional late fee of ₹4,700.00 for both CGST and SGST on October 3, 2026. Despite payment of dues, the respondent authorities had not withdrawn the assessment orders, compelling the petitioner to approach the High Court.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 Whether the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn in light of the petitioner filing the delayed returns and paying the requisite late fees and interest, as stipulated by Section 62(2) of the GST Act? The petitioner argued that they had filed the returns for December 2022 on June 16, 2023, and paid the applicable interest and late fees, including an additional late fee on October 3, 2026. They contended that despite fulfilling these conditions, the respondent authorities had not withdrawn the assessment orders, necessitating the writ petition. The petitioner relied on the provisions of Section 62(2) of the GST Act and a judgment from the High Court of Madras (Madurai Bench) in W.P. (MD) No. 18740 of 2024, as well as a previous judgment of this Court in W.P. No. 20705 of 2025. The respondents, represented by the learned Assistant Government Pleader, did not record any specific arguments against the petitioner's contentions.