HC Holds Section 62 GST Assessment Withdrawn After Valid Return Filing

Case Details: Shah and Shahi Foreign Trade (OPC) (P.) Ltd. vs. Deputy Assistant Commissioneri ST - [2026] 186 taxmann.com 478 (Andhra Pradesh)

Judiciary and Counsel Details

• R. Raghunandan Rao & T.C.D. Sekhar, JJ.
• C. Sanjeeva Rao for the Petitioner.

Facts of the Case

The petitioner was subjected to assessment proceedings under Section 62 of the CGST Act and the Andhra Pradesh GST Act on account of non-filing of returns. An assessment order was passed along with summary in FORM GST DRC-07. Subsequently, the petitioner filed a valid return, along with payment of tax, interest, and late fee. Recovery and garnishee attachment were thereafter initiated pursuant to the said assessment order. It was contended that upon filing of the valid return together with applicable tax, interest and late fee, the deeming provision contained in Section 62(2) automatically rendered the assessment order and consequential summary withdrawn and, therefore, no recovery proceedings could continue thereafter. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that Section 62(2) of the CGST Act and the Andhra Pradesh GST Act contains a statutory deeming provision under which an assessment order passed for non-filing of returns stands withdrawn upon filing of a valid return together with payment of tax, interest and late fee. It was held that since the petitioner had filed the valid return and discharged the applicable liabilities under Section 47 and Section 50 of the CGST Act, the assessment order and summary stood deemed withdrawn by operation of law. Any recovery proceedings initiated on the basis of such withdrawn assessment order could not legally survive thereafter. It was also observed that garnishee attachment founded upon the said assessment proceedings was unsustainable once the deeming withdrawal under Section 62(2) had taken effect. Accordingly, the recovery proceedings and garnishee attachment were set aside.