The Madras High Court directed the Goods and Services Tax ( GST ) department to consider a request made under the Amnesty Scheme to waive late fees. The court issued this directive while hearing a writ petition for a mandamus, which was filed after the GST Department insisted the petitioner pay undue interest.
A writ petition has been filed seeking a directive for the first respondent to extend the benefit of the waiver of late fees granted under Notification No. 7/2023-CT, dated 31.03.2023, as amended by Notification No. 25/2023-CT, dated 17.07.2023, by considering the petitioner’s representation dated 16.12.2023.
The petitioner company, Amar Trading Corporation is engaged in the trading of fireworks, had its business place in Tirunelveli audited by the Central GST internal audit officers on 20.09.2023. Discrepancies were found and communicated to the petitioner. Following explanations from the petitioner, all issues were resolved except for the non-payment of a late fee of Rs. 58,400/- under CGST and Rs. 58,400/- under SGST for the delayed filing of the annual return in Form GSTR 9.
The petitioner filed their annual returns for the assessment year 2019-2020 on 05.11.2022, with a delay of 584 days, attributing the delay to the COVID-19 pandemic and lack of knowledge on the part of their accountant.
The petitioner submitted that they are entitled to the benefits under the Amnesty Scheme introduced by Notification No. 7/2023-CT and amended by Notification No. 25/2023-CT, which offers a waiver of the late fee in excess of Rs. 10,000/-.
This scheme applies to registered persons who had not filed their annual returns for the tax periods from 2017-2018 to 2021-2022 but did so between 01.04.2023 and 31.08.2023. The petitioner paid the maximum late fee of Rs. 10,000/- under both CGST and SGST as stipulated by the scheme but was still being asked to pay additional interest.
The petitioner has therefore sought a mandamus directing the first respondent to extend the benefit of the waiver of the late fee as per the amended notification.
The standing counsel for the respondents acknowledged the introduction of the Amnesty Scheme and assured that the petitioner’s representation would be considered in accordance with the amended notification dated 17.07.2023.
Considering respondent counsel’s acknowledgement, a Single bench of Justice B. Pugalendhi disposed of the writ petition with a directive for the respondent to consider the petitioner’s representation and make 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 three months from the date of receipt of a copy of this order. Until then, any enquiry pursuant to the show cause notice shall be deferred.
Mr. N.Sudalaimuthu appeared for the Petitioner.
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