Late Fee Waiver Under Amnesty Scheme Valid for GSTR-9 Returns Filed Before Notification: HP HC

Late Fee Waiver benefits under Amnesty Scheme cannot be denied for GSTR 9 Returns Filed before Issuance of Notification: Himachal Pradesh High Court

R. T. Pharma Vs Union of India & Ors. (Himachal Pradesh High Court); CWP No. 4899 of 2024; 21/12/2024

Facts in brief:

The petitioner is engaged in the business of manufacturing and sale of medicines and registered with the Goods and Service Tax Department vide GSTN No. 02AADFR7491K1ZY. The due date for submission of GSTR 9 return alongwith reconciliation statement in form GSTR 9C was fixed as on 07.02.2020. However, the petitioner could not submit the same in time due to instability and financial distress and submitted the same on 13.03.2023.

The CBIC issued Notification No. 07/2023, dated 31.03.2023 for waiver of late fee in excess of Rs. 20,000/-. On 22.08.2022 a show cause notice was issued to the petitioner by the respondent contending that the petitioner is not entitled for the benefit of the Notification No. 07/2023 dated 31.03.2023 as the same provides the benefit of waiver of late fee to the tax payers who has filed the GSTR 9 and 9C returns during the period from 01.04.2023 to 30.06.2023 and the respondent proposed late fee of Rs. 12,71,754/-. The petitioner submitted reply of the notice and requested the respondent to allow the benefit to the Notification No. 07/2023, dated 31.03.2023 by taking lenient view. However, the respondent denied the benefit to the petitioner and confirmed the liability of late fee on the petitioner as he cannot go beyond the Notification No. 07/2023 dated 31.03.2023 which provides benefit to a particular set of people who has filed GSTR 9 and 9C returns from 01.04.2023 to 30.06.2023.

Judgment by the court:

“We have considered the submissions made by the learned counsel for the parties and have gone through the material placed on record.

1. It is evident that the intention of the Government is not to harass the assessee, who come forward to file their return for the assessment years mentioned in the notification within the stipulated period. Thus, it would imply that the benefit would extend to the petitioner as well, who filed the return although belatedly on 13.03.2023, which is before the cut off date mentioned in the above notification

2. It would be unjust to deny the benefit to the petitioner merely because the petitioner filed the return prior to the issuance of the amnesty notification dated 31.03.2023, confined to amnesty only to those who filed the return between 01.04.2023 and 30.06.2023.

3. The intention of the government in issuing the aforesaid notification was to encourage filing of returns. Therefore, this Court is of the view that the petitioner is entitled to the benefit of notification dated 31.03.2023.

9. Under these circumstances, the impugned order dated 30.11.2023 passed by respondent No. 3 and the show cause notice dated 22.08.2023 issued under Section 74 of the Act are set aside and the case is remanded back to the third respondent with a direction to pass fresh order on merit by extending the benefit of notification dated 31.03.2023 in accordance with law as expeditiously as possible preferably within three months from the receipt of the copy of this order.”