M/S Rt Pharma vs. Union Of INDIA And Others

Held

The Court held that the intention of the government in issuing Notification No. 07/2023 was to encourage the filing of returns and not to harass assessees. The Court found it unjust to deny the benefit to the petitioner merely because the return was filed prior to the issuance of the amnesty notification, even though it was belatedly filed on March 13, 2023, which is before the cut-off date mentioned in the notification. The Court agreed with the petitioner's submission that the benefit should extend to them. Therefore, the impugned order dated November 30, 2023, and the show cause notice dated August 22, 2023, were set aside. The case was remanded back to Respondent No. 3 with a direction to pass a fresh order on merits, extending the benefit of Notification No. 07/2023 to the petitioner in accordance with the law. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s R. T. Pharma, engaged in manufacturing and sale of medicines, filed its GSTR-9 and GSTR-9C returns for the financial year 2022-23 on March 13, 2023, after the due date of February 7, 2020. The petitioner faced financial distress and instability, leading to the delay. The Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 07/2023 on March 31, 2023, providing a waiver of late fees in excess of Rs. 20,000/- for certain registered persons. However, the petitioner was issued a show cause notice on August 22, 2023, by Respondent No. 3, proposing a late fee of Rs. 12,71,754/-. The respondent contended that the notification's benefit was only for those who filed returns between April 1, 2023, and June 30, 2023, and for specific financial years. The petitioner's reply was rejected, and an order confirming the late fee was passed on November 30, 2023.

Key Issues

1. Whether Notification No. 07/2023, dated March 31, 2023, which provides a waiver of late fees for furnishing GSTR-9/9C returns, is violative of Article 14 of the Constitution and the principle of parity by treating assessees who filed belatedly before April 1, 2023, differently from those who filed between April 1, 2023, and June 30, 2023. The petitioner argued that the notification should be extended to them, as they filed their returns before the stipulated period of the notification but after the original due date, and that denying them the benefit is unjust. The petitioner relied on the Kerala High Court's decision in Anishia Chandrakanth vs. Superintendent, Central Tax and Central Excise. The respondents contended that the amnesty scheme under Notification No. 07/2023 is applicable only to those who failed to file their returns within the stipulated period and filed between April 1, 2023, and June 30, 2023, and that the petitioner's case, where the due date expired on February 7, 2020, and the return was filed on March 13, 2023, is not covered by the notification.