2019 (9) TMI 60 - HC - GST

Levy of late fees for the late filing of the Form GSTR- 3B - Section 47 of the CGST Act as well as the SGST Act - applicant seeks the benefit of complete waiver of late fees in accordance with the second proviso to the Notification No.76/2018-Central Tax dated 31.12.2018 for the returns furnished upto September 2018 - HELD THAT - In Para 3.3 of the writ application, a chart has been provided indicating the relevant section and the form number as well as the rule number. Section 37 corresponds to GSTR-1, Section 38 corresponds to GSTR-2, Section 39 corresponds to GSTR-3,4,5,6,7,8 respectively and Section 45 corresponds to GSTR-10. The submission is that the GSTR-3B cannot be read in Section 39 - In such circumstances, the levy of late fees by virtue of the power under Section 47 of the Act is something else which this Court will have to look into and adjudicate. The writ applicants have been able to make a strong prima facie case to have an ad-interim order in terms of Para -7(d). Let Notice be issued to the respondents, returnable on 16.10.2019.

Summary

Issues:
1. Challenge to imposition of late fees for late filing of Form GSTR-3B under section 47 of the CGST Act.
2. Request for complete waiver of late fees for a specific period.
3. Demand for refund of late fees paid for delayed filing of returns.
4. Stay on recovery proceedings for late fees.
5. Seeking additional relief in the interest of justice.

Analysis:
1. The writ application challenges the imposition of late fees for late filing of Form GSTR-3B under section 47 of the CGST Act as illegal and ultra vires. The argument is that the levy of late fees is not sustainable in law. The senior counsel for the writ applicant contends that the late fees levied are not in accordance with the provisions of the Act.

2. The applicants seek a complete waiver of late fees for late filing of Form GSTR-3B for a specific period, requesting modification of the Notification No.76/2018-Central Tax to include the period from 1st July 2017 to 30th September 2018. The counsel highlights the second proviso to the notification as the basis for seeking this waiver.

3. Additionally, the applicants demand a refund of the late fees paid for delayed filing of returns in Form GSTR-3B for the period between 1st July 2017 and 30th September 2018. This request is based on the argument that the imposition of late fees is not justified under the relevant sections of the Act.

4. To prevent any recovery proceedings for the late fees during the period in question, the applicants request a stay on such actions pending the admission, hearing, and final disposal of the petition. This is to ensure that no adverse actions are taken against the applicants during the legal proceedings.

5. Apart from the specific reliefs sought, the applicants also request any other further relief deemed just and proper in the interest of justice. This broad request indicates a willingness to consider additional remedies or solutions that the court may find appropriate based on the facts and circumstances presented during the proceedings.