Modicum Enterprise (OPC) Private Limited Vs Deputy Commissioner of State Tax & Ors. (Calcutta High Court)
No Late fees to be charged if returns not filed due to cancellation of GST registration, which was restored subsequently
The Hon’ble Calcutta High Court in M/s. Modicum Enterprise (OPC) Private Limited v. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax [M.A.T No. 1828 of 2022 with I.A. No. CAN 1 of 2022 dated December 22, 2022] has held that the assessee cannot be penalised by demanding late fee under Section 47 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) where, the assessee had not filed returns due to the cancellation of its Goods and Services Tax (“GST”) Registration on the factually incorrect grounds. Further held that, the demand of late fee from the assessee is without jurisdiction and not tenable in the eye of law. Directed the Revenue Department to facilitate the process of filing of return, without the payment of late fee.
Facts:
M/s. Modicum Enterprise (OPC) Private Limited (“the Appellant”) was a registered dealer under the provisions of the CGST Act whose, GST Registration was cancelled by the Revenue Department (“the Respondent”) on the ground that it was a non-existing dealer. The Appellant preferred an appeal before Appellate Authority, which was allowed by an order dated July 22, 2022 (“the Appellate Order”) wherein, it was held that the cancellation of Petitioner’s GST Registration was incorrect. Subsequently, the cancellation of GST Registration was revoked and restored.
However, when the Appellant attempted to file returns, there was a demand of INR 5,000/- per return as late fee payable under Section 47 of the CGST Act, against which, the Appellant filed a petition wherein, the learned Single Judge vide order dated September 28, 2022 (“the Impugned Order”), declined to grant interim order to the Appellant.
Being aggrieved, this intra-court appeal has been filed.
Issue:
Whether the late fee can be demanded from the Appellant under Section 47 of the CGST Act?
Held:
The Hon’ble Calcutta High Court in M.A.T No. 1828 of 2022 with I.A. No. CAN 1 of 2022 held as under:
