Late fee on late return filing - Logitax

Late fee on late return filing

Case Details : GST- Late fee on account late furnishing the return due to cancellation of the registration


Declared By : West Bengal – Case Law on 22nd December 2022

What Happened Exactly :

  1. The petitioner is registered under GST.
  2. The registration of the petitioner was cancelled on the ground that the appellant was a non-existing dealer.
  3. Aggrieved by the same, the petitioner preferred the appeal and by an order dated 22nd July, 2022. The appeal was allowed and a clear finding has been rendered by the appellate authority. The ground on which the cancellation was made, was incorrect.
  4. Consequent upon the order passed by the appellate authority. The cancellation of the registration was revoked by an order dated 27th January, 2020 and the registration was restored.
  5. When the appellant attempted to file his returns, there is a demand of Rs.5,000/- per return. Stating that it is late fee payable under Section 47 of the Act.
  6. The petitioner filed this petition questioning whether the late fee can be demanded from the petitioner. Although returns are filed late due to incorrect cancellation of registration.

Court's Decision :

  1. Provision of sub-section (1) of Section 47 of the Act deals with a person, who fails to furnish the returns either under Section 39 or Section 45 or Section 44.
  2. In the instant case, the revenue does not state that the appellant failed to furnish its return within the due date. The reason for non-furnishing the return is cancellation of the registration. The ground on which the appellant is a non-existing dealer.
  3. This order of cancellation of registration was set aside by the appellate authority holding that the order was passed on a factually incorrect premise. If that be so, the appellant cannot be penalised by demanding late fee.
  4. Demand of late fee from the appellant of Rs.5,000/- per return is without jurisdiction and not tenable in the eye of law.
  5. Respondents are restrained from demanding any late fee from the appellant in respect of the returns. Which they intend to file and to facilitate the process of filing the return. The nodal officer is directed to render necessary assistance. So the appellant will be able to file the return without the payment of late fee.
  6. Assessee appeal is allowed.

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