Facts of the Case:  The petitioner, a registered GST dealer, failed to file returns for a certain period. The respondent passed a best judgment assessment order dated 07.02.2024 under Section 62(1) of the CGST/APGST Act, demanding tax.

Later, the petitioner filed the pending returns and paid the self-assessed tax along with late fee.

Despite this, the authorities initiated recovery, including adjustment of ₹12,92,346/- from available input tax credit, contending that filing of returns was not intimated to the proper officer.

The petitioner challenged the recovery, claiming that the assessment order stood automatically withdrawn under Section 62(2) once returns were filed and dues paid.

Issue: Whether the best judgment assessment order under Section 62(1) continues to have effect after the registered person files valid returns and pays tax and late fee within the statutory period, and whether intimation to the officer is a pre-condition for deemed withdrawal.

Held that: The High Court allowed the petition and held as under Section 62(2) clearly provides that if a registered person furnishes valid returns within 60 days of service of the best judgment assessment order and pays tax and late fee, such order “shall be deemed to have been withdrawn”. The statute does not require any separate intimation or confirmation from the proper officer. The deeming provision operates automatically by law.

Since the petitioner filed returns and paid the tax and late fee within the prescribed time, the order dated 07.02.2024 lost its force. No recovery can be initiated on the basis of such withdrawn order.

The amount of ₹12,92,346/- already adjusted against the petitioner’s input tax credit must be re-credited. The debit entry is unsustainable once the order is deemed withdrawn. The exercise must be completed within four weeks.

The Court clarified that setting aside the order does not prevent the authorities from taking steps for assessment under law, if they deem it necessary. Apart from statutory interest and late fee, no further tax or penalty can be demanded under the withdrawn order.

Case Name: JPR Projects Versus The State Of Andhra Pradesh, The Assistant Commissioner ST, Appellate Authority, Additional Commissioner (ST) dated 20.08.2025

To read the complete judgment 2025 Taxo.online 2017