Section 62(2) GST withdrawal rule: filing returns with tax, interest and late fee ends assessment-based recovery action.

Where returns are filed and the related tax, interest and late fee are paid within the statutory framework of Section 62(2) of the GST Act, a summary assessment for non-filing of returns stands withdrawn. The assessment-based recovery measures, including garnishee action, cannot continue once that withdrawal operates, subject to verification that the filing and payment requirements were met. The text therefore explains that compliance with the statutory conditions defeats further enforcement founded on the deemed assessment order.

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Issues: Whether the assessment order passed under Section 62 of the Goods and Services Tax Act, 2017 stood deemed to be withdrawn on the filing of returns together with tax, interest and late fee, thereby nullifying the recovery and garnishee steps taken pursuant to that order.

Analysis: Section 62(2) provides that an assessment made for non-filing of returns stands withdrawn when the registered person files the relevant returns within the period allowed, along with the applicable tax, interest and late fee. On the facts recorded, the returns for the relevant months were filed and the tax liabilities were discharged with interest and late fee, and the Court accepted that the statutory consequence under Section 62(2) followed. The recovery proceedings initiated on the basis of the assessment order could not survive once the order was treated as withdrawn, subject to verification of the dates of filing and payment.

Conclusion: The assessment order was held to be deemed withdrawn and the recovery and garnishee proceedings based on it were also liable to be withdrawn.

Final Conclusion: The writ petition succeeded by negating further enforcement of the assessment-based recovery action, subject to verification of compliance with the statutory payment and filing requirements.

Ratio Decidendi: Where returns are filed and the associated tax, interest and late fee are paid within the statutory framework of Section 62(2), the summary assessment for non-filing of returns stands withdrawn and consequential recovery proceedings cannot continue.

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