Belated GSTR-3B filing can trigger withdrawal of best judgment assessment under amended section 62(2), while interest and late fee remain.

Where a GSTR-3B return is filed after a best judgment assessment under section 62(1), the amended section 62(2) applies if the return is filed within the permitted period. On satisfaction of that statutory condition, the assessment is treated as withdrawn, even though liability for interest and late fee continues. The Madras HC accepted the belated return, held that delay was liable to be condoned, and found that the best judgment assessment stood deemed withdrawn. The revenue's right to recover tax, interest and late fee remained unaffected in accordance with law.

---

---

Issues: Whether the belated filing of GSTR-3B after a best judgment assessment under section 62(1) warranted condonation of delay and deemed withdrawal of the assessment order.

Analysis: The return under GSTR-3B was filed after the assessment order, and the dispute turned on the effect of the amended scheme under section 62(2), which provides that a return filed within the permitted period results in the assessment being treated as withdrawn, while liability towards interest and late fee remains unaffected. The Court applied the amended provision and accepted that the delay in filing the return was liable to be condoned, leading to the statutory consequence of withdrawal of the best judgment assessment.

Conclusion: The belated GSTR-3B return was to be accepted, and the assessment order under section 62(1) stood deemed withdrawn.

Final Conclusion: The writ petition succeeded, and the impugned best judgment assessment ceased to operate, leaving the revenue's right to recover tax, interest and late fee unaffected in accordance with law.

Ratio Decidendi: Where the statutory conditions under section 62(2) are satisfied on filing the return within the permitted period, the best judgment assessment is deemed withdrawn, notwithstanding continuing liability for interest and late fee.

---