GSTR-3B filing delay: extension of GST benefit and withdrawal of assessments with revocation of bank attachments

Condonation of delay for failure to file GSTR-3B returns is addressed, applying precedent to extend entitlement to GST benefit under the statutory provision cited, resulting in withdrawal of assessments for JanuaryJuly 2023; this produces immediate revocation of the impugned administrative endorsement and cancellation of consequent enforcement actions, including garnishee notices and bank account attachments. The extension of benefit operates despite appeals being time-barred under appeal limitation rules, and the assessments and enforcement steps are treated as deemed withdrawn, yielding restoration of relief to the taxpayer.

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Issues: (i) Whether the petitioner is entitled to the benefit under Section 62(2) of the GST Act permitting condonation of delay in filing GSTR-3B returns and, as a consequence, whether assessments passed under Section 62 and the appellate endorsement under Section 107(1) rejecting appeals as time-barred should be set aside and treated as withdrawn, including revocation of any garnishee/attachment actions.

Analysis: The petitioner filed GSTR-3B returns for the period in question after assessment orders were passed under Section 62. The question turns on applicability of Section 62(2) to condone delayed return-filing in light of amendments and on precedents applying that provision to similar facts. The Court considered the effect of the amendment to Section 62(2) and followed earlier High Court decisions addressing identical issues, finding that the statutory provision and subsequent judicial rulings support extension of the benefit permitting condonation and treating the assessments as withdrawn. The Court also addressed consequences flowing from that determination, including the validity of the endorsement rejecting appeals as time-barred and any enforcement steps such as garnishee notices or bank attachments.

Conclusion: The petitioner is entitled to the benefit of Section 62(2); the assessment orders for the period specified are deemed to have been withdrawn, the appellate endorsement dated 11.09.2024 is set aside, and any actions taken pursuant to those orders including garnishee notices and bank attachments stand revoked.

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