Case Summary
Case Title: M/s R.T. Pharma v. Union of India & Ors.
Court: High Court of Himachal Pradesh, Shimla
Petition No.: CWP No. 4899 of 2024
Category: GST – Late fee waiver under Amnesty Notification
Date of Judgment: 21.12.2024
Relevant Sections: Sections 44, 47, 74 & 128 of the CGST Act, 2017; Notification No. 07/2023-Central Tax dated 31.03.2023.
Facts (Paras 2–3)
The petitioner, a pharmaceutical manufacturer registered under GST, was required to file its GSTR-9 and GSTR-9C for FY 2018-19 by 07.02.2020. Owing to financial distress, the returns were filed belatedly on 13.03.2023. Later, CBIC issued Notification No. 07/2023 dated 31.03.2023, granting waiver of late fees beyond ₹10,000 for taxpayers filing annual returns for FYs 2017-18 to 2021-22 between 01.04.2023 and 30.06.2023. Authorities denied benefit to the petitioner on the ground that the return was filed before 01.04.2023 and imposed late fees of ₹12,71,754 under Section 74.
Questions before the Court
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Whether taxpayers who filed annual returns before 01.04.2023 but after the original due date can also claim the benefit of Notification No. 07/2023?
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Whether restricting amnesty relief only to a limited class of taxpayers violates Article 14 of the Constitution?
Observations (Paras 6–8)
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The Government’s intent behind the amnesty scheme was not to harass taxpayers but to encourage compliance by reducing penal consequences.
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Denying benefit to those who filed returns before 01.04.2023 would create an arbitrary classification, especially since they demonstrated bona fides by filing even before the notification commenced.
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Reliance was placed on Anishia Chandrakanth v. Superintendent, Central Tax (Kerala HC, 10.07.2024), where similar late-fee demands were held unjust once the Government had already issued amnesty notifications.
Judgment (Paras 9–10)
The Court quashed the show cause notice dated 22.08.2023 and the order dated 30.11.2023. The matter was remanded to the department with directions to reconsider the petitioner’s case by extending the benefit of Notification No. 07/2023. The writ petition was allowed.
Table of Referred Cases
| Case | Court | Citation/Date | Verdict |
|---|---|---|---|
| Anishia Chandrakanth v. Superintendent, Central Tax | Kerala HC | W.P.(C) Nos. 30644 etc. of 2023, decided on 10.07.2024 | Held that once amnesty notifications capped late fees at ₹10,000, pending notices demanding higher amounts for delayed GSTR-9/9C were unjust and unsustainable. |
Between Fine Lines
This judgment clarifies that the amnesty benefit for late filing of GST annual returns cannot be restricted only to those filing after 01.04.2023. Even taxpayers who filed belatedly before the cut-off date are entitled to relief. For businesses, this ruling underscores that courts will interpret amnesty schemes liberally to prevent arbitrary classifications and ensure parity among compliant taxpayers.
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