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The Court held that the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn.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was based on Section 62(2) of the GST Act, which stipulates that any order passed under Section 62 would be deemed withdrawn once the necessary returns are filed within the period stipulated, or if delayed, upon payment of the late fee. The Court noted that the petitioner had paid the necessary late fee for the delayed return for July 2025. Following the precedent set by the High Court of Madras (Madurai Bench) in Writ Petition (MD) No. 18740 of 2024 and this Court's own judgment in W.P.No. 20705 of 2025, the Court found it appropriate to condone the delay in filing the GSTR 3B returns. Consequently, the assessment order was deemed withdrawn, and the respondents were directed not to initiate or continue any recovery steps for the taxes and dues raised under the said order of assessment. The writ petition was allowed, and no costs were imposed.

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 July 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 delayed, they were eventually filed on April 27, 2026, and the applicable late fee and interest were paid on October 9, 2026. Despite these actions, the respondent authorities had not withdrawn the assessment orders, compelling the petitioner to approach the High Court. The dispute involves CGST and SGST late fees totaling ₹5,000 and additional late fees of ₹10,600 for each component.

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 Whether the assessment orders passed under Section 62 of the GST Act are deemed to have been withdrawn in light of the petitioner filing the delayed returns and paying the requisite late fees and interest, as stipulated under Section 62(2) of the GST Act?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 they could not file their monthly returns for July 2025 within the statutory period but subsequently filed them on April 27, 2026, with a delay of 104 days. They further contended that the applicable interest and late fees were paid on October 9, 2026. Despite these payments, the respondent authorities had not withdrawn the assessment orders dated November 12, 2025, and November 13, 2025. The petitioner relied on the provisions of Section 62(2) of the GST Act, which suggests that orders passed under Section 62 are deemed withdrawn upon filing of returns and payment of late fees. They also cited a judgment from the High Court of Madras (Madurai Bench) in WP(MD) No. 18740 of 2024 and a previous order of this Court in WP No. 20705 of 2025 (M/s. Brothers Engineering and Errectors Limited Vs. State of Andhra Pradesh) which supported their contention. Respondents' Arguments: No specific arguments were recorded for the respondents in the judgment.