Prakash Fabricators & Electricals Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
In a recent ruling, the Madras High Court addressed a petition filed by Prakash Fabricators & Electricals against an order imposing a late fee and penalty for failing to file annual returns and a reconciliation statement on time. The court set aside the impugned order and remanded the matter for reconsideration, offering the petitioner an opportunity to contest the charges on their merits. This article delves into the details of the case, the court’s observations, and the implications of the judgment.
Prakash Fabricators & Electricals challenged an order dated 13.02.2023, which imposed a late fee and penalty for not filing their annual returns and reconciliation statement within the stipulated time frame. The petitioner claimed that they were unable to participate in the proceedings leading to the impugned order because their Chartered Accountant, who was entrusted with GST compliance, had overlooked the show cause notice and the subsequent order.
The petitioner’s counsel argued that the late fee component in the impugned order amounted to Rs.1,54,800/-, and contended that the petitioner had already remitted Rs.1,64,000/-. The petitioner sought an opportunity to contest the matter on merits, emphasizing that the failure to participate in the earlier proceedings was not deliberate but due to an oversight by their Chartered Accountant.
