Recovery Order Invalid If Return Filed Post Order Under Section 62

Understanding Section 62 Recovery Order vs. Filed Return

Section 62 of the CGST Act empowers tax officers to issue a best judgment assessment if you fail to file returns, but what if you file later? A key relief: if you file your pending return within 30 days from the date of the order, the recovery order automatically lapses.

What Is Section 62 of CGST Act?

• Applies when a registered person fails to furnish returns, even after a notice under Section 46.
• Officer can pass a best judgment assessment based on available information.
• This is an ex-parte order — no hearing if you don’t respond.

When Is a Recovery Order Invalid?

Key Rule:
If the defaulting taxpayer files the return within 30 days from service of the assessment order under Section 62(1), then:
✅ The order is deemed withdrawn
✅ No recovery can be initiated
✅ Only late fee and interest are payable

Legal Basis:

• Section 62(2) of CGST Act, 2017
• CBIC Clarification in various FAQs

Important Case Law: Best Judgement Order and Subsequent Return

In Avinash V. vs State Tax Officer (Kerala High Court) — the Court held that when the taxpayer filed the return after the assessment order under Section 62, the recovery steps taken were invalid. The officer must drop recovery proceedings once return is filed in time.

Citation: [2022 (3) TMI 789 – Kerala HC]

Step-by-Step: How to Handle a Section 62 Order

1. Check Order Date: Note when you received the assessment order.
2. File Your Return: File pending return(s) within 30 days of order service.
3. Pay Due Taxes: Pay self-assessed tax, interest, and late fee.
4. Inform Officer: Keep proof of return filing and payment handy.
5. Follow Up: Ensure recovery steps like bank attachment are withdrawn.

Expert Tip

Many taxpayers panic when they see a bank attachment notice after a Section 62 order. Don’t delay — filing the return within 30 days protects you legally and stops recovery automatically.

FAQ: Recovery Order Section 62

Q1: What if I miss the 30-day deadline?
The order stands and recovery can proceed.

Q2: Do I need to appeal if I file the return?
No appeal needed if you file within 30 days — the law auto-withdraws the order.

Q3: Can recovery continue despite filing?
No, officers must stop recovery once return is filed on time.

Key Takeaway

A recovery order under Section 62 is not valid if you file your return within 30 days from the order date. Stay compliant, file quickly, and avoid unnecessary attachment of your bank accounts.

Summary

A recovery order passed under Section 62 becomes invalid if the taxpayer files the pending return within 30 days from the order date. Learn the rules and recent case law here.

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