Month: May 2026

Assessment u/s. 62 for Non-Filing of GSTR-3B Returns – Delay in filing was due to Cancellation of Registration, hence Order u/s. 62 is withdrawn

In the case of:

Surya Sreebhavani Infrastructure (P.) Ltd. vs. Assistant Commissioner of State Tax [2026] 186 taxmann.com 483 (Andhra Pradesh)[06-05-2026]

Facts of the Case:

Orders for Best Judgment Assessment u/s. 62 was passed for non-filing of GSTR-3B returns for March (23rd May), April (14th June) and August 2024 (1st November).

It was observed that Returns have been filed with payment of Tax, Interest and Late Fee for March on 28th September, April on 29th Septmber, but there was a long delay for August 2024 (Filed on 7th July 2025), since the registration was cancelled w.e.f. 31st July 2024, and restored only on 26th June 2025.

Hon’ble High Court of Andhra Pradesh has held that:

“Section 62(2) of the Act, 2017, stipulates that any order of assessment passed under Section 62 of the Act, 2017, would be deemed to have been withdrawn upon necessary returns being filed by the registered person, along with payment of tax, interest and late fees. In the present case, the petitioner has taken the necessary steps.

However, the delay in the filing of the returns for the month of August-2024 has been explained and as such, the said delay requires to be condoned.”

Therefore, it was held that since the delay in filing was due to the Cancellation of registration, the Orders as stated above are deemed to be withdrawn.

Relevant Provisions:

Section 62(1) of the CGST Act, 2017, as amended:

Notwithstanding anything to the contrary contained in Section 73 (For Non-Fraud Cases) or Section 74 (For Fraud Cases) or section 74A (New combined Section w.e.f 1st November 2024], where a registered person fails to furnish the return under Section 39 (Monthly or Quarterly Returns) or Section 45 (Final Return), even after the service of a notice under Section 46 (Notice for default in filing returns), the proper officer may proceed to assess the tax liability of the said person to the best of his judgment taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under Section 44 9Annual Returns) for furnishing of the annual return for the financial year to which the tax not paid relates.

Sub-section (2) states that:

Where the registered person furnishes a valid return within sixty days (thirty days prior to 1st October 2023) of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of Section 50  or for payment of late fee under Section 47 shall continue.

Personal Hearing not granted – Adjudication order set aside

In the case of:

Parv Alloys & Metals vs. Union of India [2026] 186 taxmann.com 107 (Punjab & Haryana)[29-04-2026]

Facts of the Case:

Show Cause Notice was issued, mentioning the Date, Time and Venue of Personal Hearing as NA. Further to the same, an Adjudicating Order was passed, demanding Tax.

Learned State Counsel submitted that since the petitioner did not file a written response to the show cause notice, no opportunity of hearing was required to be granted to them.

Hon’ble High Court of Punjab & Haryana has set aside the Adjudication Order stating that:

  1. Under Section 75(4) of the CGST Act, 2017, an assessee is statutorily entitled to be granted an opportunity of hearing before any adverse decision is even contemplated against him.
  2. Further, in the absence of a written response, if the petitioner had been granted an opportunity of hearing, it could, at the time of such hearing, produce its original record in the form of account books, ledgers etc. and/or file written arguments in defence and make an attempt to satisfy the Assessing Officer to withdraw the show cause notice served upon him.
  3. Hence, the impugned Order is set aside. Department can proceed against the petitioner but only after providing the Opportunity of Personal Hearing as per Section 75(4).