GST
TRT-2025-
High court of Andhra Pradesh
Date:-20-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 20 Aug 2025
Parties: JPR Projects v. State of Andhra Pradesh & Ors.
Facts -
- Petitioner (a registered partnership firm under GST) was issued a best judgment assessment order (ASMT-13 dated 07.02.2024) under Section 62, citing non-filing of returns.
- Despite filing valid returns within time and paying due tax + late fee, authorities proceeded to recover ₹12,92,346/- from the electronic credit ledger.
- Department argued that withdrawal of the best judgment order required specific intimation to the officer.
Issue -
- Whether a best judgment assessment order under Section 62(1) stands automatically withdrawn once the registered person files valid returns with tax/late fee, or whether further intimation to the officer is required.
Order -
- The division bench of the Hon’ble high court held that Section 62(2) creates a deeming fiction - best judgment order is ipso facto withdrawn on filing valid returns within statutory time with tax and late fee.
- No requirement exists in law for additional intimation to the officer for withdrawal to take effect.
- Since the petitioner complied, the order dated 07.02.2024 stood withdrawn by operation of law; recovery from ITC ledger was illegal.
- The debit entry of ₹12,92,346/- must be reversed within four weeks; liberty is given to initiate fresh assessment if lawfully required.
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