M/S.Amar Trading Corporation vs. Union Of INDIA Represented By Its Secretary TO Govt
Original PDF →Facts
M/s. Amar Trading Corporation (the petitioner) filed its annual return in GSTR 9 for the assessment year 2019-2020 on 05.11.2022, which was delayed by 584 days. The Central GST internal audit officers conducted an audit on 20.09.2023 and identified discrepancies. Following the petitioner's explanations, all issues were resolved except for the non-payment of late fees amounting to Rs. 58,400/- under CGST and Rs. 58,400/- under SGST for the delayed filing. The petitioner claimed eligibility for the Amnesty Scheme introduced by Notification No. 7/2023-CT dated 31.03.2023, as amended by Notification No. 25/2023-CT dated 17.07.2023, which offers a waiver of late fees exceeding Rs. 10,000/-. The petitioner paid Rs. 10,000/- under CGST and Rs. 10,000/- under SGST as per the scheme's limit. However, the respondents insisted on payment of undue interest. The petitioner filed a writ petition seeking a Mandamus to extend the benefit of the waiver.
Held
The Court disposed of the writ petition with a direction to the respondents to consider the petitioner's representation and take a decision in accordance with 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 the order. The Court deferred any inquiry contemplated pursuant to the show cause notice until such a decision is taken. The Court did not explicitly rule on the petitioner's entitlement to the benefit of the Amnesty Scheme, but rather directed the respondents to consider the representation in light of the relevant notifications. The reasoning was based on the submission by the respondents' counsel that the representation would be considered as per the notification. The ratio decidendi is that representations concerning the application of amnesty schemes should be considered by the authorities in accordance with the scheme's provisions.
Key Issues
1. Whether the petitioner is entitled to the benefit of waiver of late fees under Notification No. 7/2023-CT dated 31.03.2023, as amended by Notification No. 25/2023-CT dated 17.07.2023, for its annual return filed for the assessment year 2019-2020 on 05.11.2022, despite the return being filed prior to the specified period of the Amnesty Scheme (01.04.2023 to 31.08.2023)? Petitioner's contention: The petitioner argued that they are entitled to the benefit of the Amnesty Scheme as they have paid the capped late fee of Rs. 10,000/- under CGST and Rs. 10,000/- under SGST, and the respondents are insisting on payment of undue interest. They relied on the Amnesty Scheme notifications. Respondents' contention: The learned standing counsel for respondents 2 & 3 accepted the introduction of the Amnesty Scheme and submitted that the petitioner's representation would be considered in accordance with the Notification dated 17.07.2023.
Sections Cited
Notification No. 7/2023-CT, Notification No. 25/2023-CT
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Cause title — parties, addresses and appearances
O R D E R 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. 2/7 https://www.mhc.tn.gov.in/judis
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 3/7 https://www.mhc.tn.gov.in/judis 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 4/7 https://www.mhc.tn.gov.in/judis 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. 28.02.2024 NCC:Yes/No Index:Yes/No Internet:Yes vrn 5/7 https://www.mhc.tn.gov.in/judis To 1.The Secretary to Government, Union of India, O/o. the GST Council Secretariat, 5th Floor Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-1. 2.The Superintendent of CGST Audit Tirunelveli Audit Circle, Office of the Assistant Commissioner (Audit) of CGST and CE, Tractor Road, NGO A Colony, Tirunelveli 627 007. 3.The Superintendent of CGST & Central Excise, Thiruthangal Range, Central Revenue Complex, Thiruthangal- Pallapatti Road Thiruthangal-626 130. 6/7 https://www.mhc.tn.gov.in/judis B.PUGALENDHI, J. vrn Order made in W.P(MD)No.4572 of 2024 and WMP(MD) No.4413 of 2024 28.02.2024 7/7 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.