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2025 (3) TMI 1173 - HC - GSTEntitlement for benefit of the Amnesty Scheme to the petitioner for the waiver of late fees for filing GSTR-1 and GSTR-9 returns - HELD THAT - Concededly petitioner had filed its returns before the date prescribed in notification number 7/2023 and 25/2023. Those taxpayers who had filed within the period prescribed in aforesaid notifications were given the benefit of waiver of late fee beyond Rs. 10, 000/-. Petitioner who had filed his its returns even before the notification came in not being given the benefit of waiver of late fee as mentioned above. Such a differential treatment between persons who filed their returns belatedly but before the notification came in and those who filed within the period prescribed by the notification is according to me improper. In the decision of the Himachal Pradesh High Court in M/s. RT Pharma v. Union of India Others 2024 (12) TMI 1228 - HIMACHAL PRADESH HIGH COURT in a similar set of facts it was observed that it will be unjust to deny the benefit of the Amnesty Notification to those who have filed the returns prior to the date prescribed under the said Notification. It is further observed that the intention of the Government in issuing the notification was to encourage the filing of the returns. A learned single Judge of this court had in Anishia Chandrakanth v. The Superintendent 2024 (4) TMI 993 - KERALA HIGH COURT observed that when the government itself had waived late fee under the aforesaid two notifications in excess of Rs. 10, 000/- in case of non-filers there appears to be no justification in continuing with the notices for non-payment of late fee for belated GSTR-9C that too filed by the taxpayers before 01-04-2023 the date on which the amnesty commenced. Since the intention behind the two notifications is to encourage the taxpayers to file their returns a person cannot be put to prejudice merely because he filed the returns prior to the date fixed in the Notification. It is in fact the spirit of the Notifications that has to be taken into consideration. Viewed in that light petitioner having filed its returns before the date prescribed in the Notification should also be given the benefit of the waiver of late fee beyond Rs. 10, 000/-. Petition disposed off.
ISSUES PRESENTED and CONSIDERED
The core legal questions considered in this judgment are:
ISSUE-WISE DETAILED ANALYSIS 1. Entitlement to Amnesty Scheme Benefits Relevant legal framework and precedents: The Amnesty Scheme, outlined in Notification No. 7/2023 and 25/2023, provides for a waiver of late fees in excess of Rs. 10,000/- for taxpayers who filed their returns between 01-04-2023 and 31-08-2023. The scheme aims to encourage the filing of returns by providing relief to non-filers for the financial years 2017-18 to 2021-22. Court's interpretation and reasoning: The Court examined the intention behind the Amnesty Scheme, which is to incentivize the filing of returns. It found that excluding taxpayers who filed before the scheme's effective date from its benefits contradicts the scheme's purpose. The Court referenced the Himachal Pradesh High Court's decision in M/s. RT Pharma v. Union of India & Others, which held that denying the benefit to early filers is unjust. Key evidence and findings: The petitioner had filed the GSTR-9 returns for the years 2018-19 and 2019-20 before the Amnesty Scheme's effective date. The Tax Officer's refusal to extend the scheme's benefits to the petitioner was based on the timing of the filings. Application of law to facts: The Court applied the principles of equity and the spirit of the Amnesty Scheme, determining that the petitioner should not be penalized for filing returns early. The scheme's intent to encourage compliance supports extending benefits to all taxpayers who filed returns, regardless of timing. Treatment of competing arguments: The respondents argued that the petitioner did not qualify for the scheme as the returns were filed before the effective date. The Court rejected this argument, emphasizing the scheme's purpose over procedural technicalities. Conclusions: The Court concluded that the petitioner is entitled to the waiver of late fees beyond Rs. 10,000/- for filing GSTR-9 returns, aligning with the scheme's intent. 2. Justification of Differential Treatment Relevant legal framework and precedents: The Court considered principles of fairness and equity in administrative actions, as well as precedents that discourage arbitrary discrimination among taxpayers. Court's interpretation and reasoning: The Court found the differential treatment between taxpayers who filed before and after the scheme's effective date to be improper. It emphasized that the scheme's intention is to encourage compliance, and penalizing early filers undermines this goal. Key evidence and findings: The petitioner filed returns before the Amnesty Scheme's effective date, and the demand notice imposed late fees beyond the scheme's waiver limit. The Court noted similar cases where early filers were unjustly excluded from benefits. Application of law to facts: The Court applied equitable principles, concluding that the petitioner's early filing should not result in a penalty. The scheme's spirit supports uniform treatment of all compliant taxpayers. Treatment of competing arguments: The respondents maintained that the scheme's benefits were limited to specific dates. The Court dismissed this argument, highlighting the scheme's overarching purpose. Conclusions: The Court ruled that the differential treatment was unjustified, and the petitioner should receive the scheme's benefits. SIGNIFICANT HOLDINGS Preserve verbatim quotes of crucial legal reasoning: "Since the intention behind the two notifications is to encourage the taxpayers to file their returns, a person cannot be put to prejudice merely because he filed the returns prior to the date fixed in the Notification." Core principles established: The judgment reinforces the principle that administrative schemes should be interpreted in light of their intended purpose, ensuring equitable treatment of all taxpayers. Final determinations on each issue: The Court set aside the demand notice imposing late fees for GSTR-9 returns beyond Rs. 10,000/- for each financial year. The petitioner is entitled to the scheme's benefits, and the differential treatment was deemed improper. The petitioner was advised to pursue statutory remedies for GSTR-1 late fees, with the writ petition period excluded from the limitation period.
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