Prakash Fabricators & Electricals Vs Assistant Commissioner (ST)
Date: July 10, 2024
Subject Matter
Late Fee for delayed submission of annual returns to be reconsidered
Summary
Prakash Fabricators & Electricals filed a petition with the Madras High Court challenging a penalty order imposed for late submission of their annual returns and a reconciliation statement. The order, dated February 13, 2023, levied a late fee totaling Rs. 1,54,800/- against the petitioner, who argued that they had already paid Rs. 1,64,000/- in late fees. The petitioner was unable to attend the earlier proceedings due to their Chartered Accountant missing critical notices related to the case. The court acknowledged this oversight and determined that fairness and justice warranted a re-evaluation of the situation. The High Court ordered the previous penalty decision to be set aside and remanded the case for reconsideration, allowing the petitioner to respond to the show cause notice within 15 days. The court emphasized the need for a fair chance to present their case, instructing the first respondent to provide a personal hearing and to issue a fresh order within three months after receiving the petitioner’s response.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order dated 13.02.2023 imposing late fee and penalty for non filing of annual returns and reconciliation statement in time is challenged in this writ petition. The petitioner asserts that he was unable to participate in proceedings culminating in the impugned order because GST compliances were entrusted to a Chartered Accountant and such Chartered Accountant had not noticed the show cause notice and impugned order.
2. Learned counsel for the petitioner submits that the late fee component in the impugned order is Rs.1,54,800/-. As against this, she submits that a sum of Rs.1,64,000/- was remitted by the petitioner. She seeks an opportunity to contest the matter on merits.
3. Mr. T. N. C. Kaushik, learned Additional Government Pleader, accepts notice for the first respondent. He submits that principles of natural justice were complied with by issuing intimation dated 20.08.2022, show cause notice dated 23.11.2022 and by offering a personal hearing.
4. On examining the impugned order, it is evident that the tax payer fail to file objections to the show cause notice. By taking into account the assertion that such non participation was on account of not being aware of proceedings, the interest of justice warrants reconsideration especially by taking into account that the entire late fee portion was remitted by the petitioner.
5. For reasons set out above, impugned order dated 13.02.2023 is set aside and the matter is remanded for reconsideration. The petitioner is permitted to submit a reply to the show cause notice within fifteen days from the date of receipt of a copy of this order. The first respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of the petitioner’s reply.
6. W. P. No. 16729 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.Nos.18379, 18380 and 18381 of 2024 are closed.