Case Law Details
Amar Trading Corporation Vs Union of India (Madras High Court)
In the case of Amar Trading Corporation vs. Union of India, heard in the Madras High Court, the petitioner seeks a directive to extend the benefit of late fee waiver granted under Notification No.7/2023-CT, dated 31.03.2023, as amended by Notification No. 25/2023-CT, dated 17.07.2023, to them. Here’s a detailed summary of the judgment/order:
The petitioner, a company engaged in trading fireworks products, had its business place audited by Central GST internal audit officers on 20.09.2023, during which certain discrepancies were found and communicated to the petitioner. Following explanations provided by the petitioner, all issues except the non-payment of late fees of Rs.58,400/- under CGST and Rs.58,400/- under SGST for delayed filing of the annual return in Form GSTR 9, were closed. The petitioner had filed their annual returns for the assessment year 2019-2020 only on 05.11.2022, with a delay of 584 days, citing reasons such as the COVID-19 pandemic and lack of knowledge on the part of their accountant.
The petitioner states that the government implemented an Amnesty Scheme through Notification No.7/2023-CT, dated 31.03.2023, as amended by Notification No. 25/2023-CT, dated 17.07.2023, wherein a waiver of late fees was provided, exceeding the maximum amount of Rs.10,000/-. This scheme applied to registered persons who had not filed annual returns for the tax periods from 2017-2018 to 2021-2022, but filed them between 01.04.2023 to 31.08.2023. The petitioner availed themselves of the benefit under this scheme by paying late fees of Rs.10,000/- each under CGST and SGST, adhering to the limit set in the Amnesty Scheme. However, the respondents demanded payment of undue interest.
The learned standing counsel for the respondents 2 & 3 acknowledges the introduction of the Amnesty Scheme and assures that the petitioner’s representation will be considered in accordance with the provisions of the Notification dated 17.07.2023.
Consequently, the writ petition is disposed of with a directive to the respondent to consider the petitioner’s representation and make a decision in line with Notification No.7/2023-CT, dated 31.03.2023, as amended by Notification No. 25/2023-CT, dated 17.07.2023, within three months from the date of receipt of a copy of this order. During this time, the enquiry contemplated pursuant to the show cause notice shall be deferred. No costs are awarded, and the connected Miscellaneous Petition is closed.
This judgment upholds the petitioner’s claim for the benefit of the late fee waiver under the Amnesty Scheme and directs the authorities to consider their representation accordingly, ensuring adherence to the relevant notifications and legal provisions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ petition is filed to direct the first respondent to extend the benefit of waiver of late fee granted vide Notification No. 7/2023-CT, dated 31.03.2023 as amended by Notification No. 25/2023-CT, dated 17.07.2023 to the petitioner by considering his representation dated 16.12.2023.
2.The petitioner Company is engaged in trading of fireworks products. The petitioner’s business place at Tirunelveli was audited by the Central GST internal audit officers on 20.09.2023 and they have found certain discrepancies and the same was communicated to the petitioner. Subsequent to the explanations offered by the petitioner, except the non-payment of late fee of Rs.58,400/- under CGST and Rs.58,400/- under SGST for the delayed filing of annual return in Form GSTR 9, have been closed. The petitioner had filed their annual returns for the assessment year 2019-2020 only on 05.11.2022 with a delay of 584 days, due to COVID-19 and lack of knowledge on the part of the accountant employed by the petitioner. According to the petitioner, the Government has implemented an Amnesty Scheme vide Notification No.7/2023-CT, dated 31.03.2023 as amended by Notification No. 25/2023-CT, dated 17.07.2023, in which waiver of late fee was given in excess of the maximum late fee amount of Rs.10,000/-. This Scheme is applicable only to the registered persons, who had not filed the annual return for the tax periods from 2017-2018 to 2021-2022, but filed the said annual returns between the period from 01.04.2023 to 31.08.2023. Since the petitioner is entitled for the benefit under the above scheme, he has paid the late fee of Rs.10000/- under CGST and Rs.10000/- under SGST, as per the limit fixed in the Amnesty Scheme. However, the respondents are insisting the petitioner to pay the undue interest. Therefore, the petitioner has filed this writ petition for a Mandamus, directing the first respondent to extend the benefit of waiver of late fee as per the amended Notification No. 25/2023-CT, dated 17.07.2023.
3. The learned standing counsel appearing for the respondents 2 & 3 accepts the introduction of Amnesty Scheme and submits that the petitioner’s representation would be considered in accordance with the Notification, dated 17.07.2023.
4. In view of the above, this writ petition is disposed of with a direction to the respondent to consider the representation of the petitioner and take a decision in accordance with the Notification No.7/2023-CT, dated 31.03.2023 as amended by Notification No. 25/2023-CT, dated 17.07.2023 within a period of three months from the date of receipt of a copy of this order. Till such time, the enquiry contemplated pursuant to the show cause notice shall be deferred. No costs. Consequently, connected Miscellaneous Petition is closed.
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