Madras High Court
Tvl.Panruti Cashew Private Limited vs The State Tax Officer on 23 September, 2025
Author: C.Saravanan
Bench: C.Saravanan
W.P.No.35962 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 23.09.2025
CORAM :
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.No.35962 of 2025
and
W.M.P.Nos.40221 and 40222 of 2025
Tvl.Panruti Cashew Private Limited,
Represented by its Director
Vishwasakthivel ... Petitioner
Vs.
The State Tax Officer,
Kelambakkam Assessment Circle,
Room No.119, 1st Floor,
No.46, Greenways Road,
Raja Annamalaipuram,
Chennai – 600 028. ... Respondent
Prayer: Writ Petition filed under Article 226 of the Constitution of India, for
issuance of a Writ of Certiorari, to call for the records on the files of the
Respondent herein in his proceeding in Form GST DRC-07 with Reference No:
ZD330225094903C dated 10.02.2025 along with detailed order in
GSTIN/33AAJCP9563B1ZD/2020-2021 dated 10.02.2025 for the tax period
APR 2020 – MAR 2021 and quash the same.
For Petitioner : Mr.B.Syed Abdul Wakeel
For Respondent : Mr.T.N.C.Kaushik
Additional Government Pleader
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W.P.No.35962 of 2025
ORDER
Mr.T.N.C.Kaushik, learned Additional Government Pleader takes notice for the Respondent.
2. This Writ Petition is being disposed of at the time of admission with the consent of the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 10.02.2025 passed by the Respondent under Section 47 of the respective GST enactments, wherein, higher penalty of Rs.4,01,348/- towards CGST and SGST each has been imposed on the Petitioner under Section 47(2) of the respective GST enactments.
4. Section 47(2) of the respective CGST and SGST enactments are reproduced below:-
____________ Page No. 2 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 Section 47(2) of CGST Act Section 47(2) of SGST Act
47. Levy of late fee 47. Levy of late fee (1) ..... (1).....
(2) Any registered person who fails (2) Any registered person who fails to furnish the return required to furnish the return required under Section 44 by the due date under Section 44 by the due date shall be liable to pay a late fee of shall be liable to pay a late fee of one hundred rupees for every day one hundred rupees for every day during which such failure during which such failure continues subject to a maximum continues subject to a maximum of an amount calculated at a of an amount calculated at a quarter percent of his turnover in quarter percent of his turnover in the State of Union territory. the State.
5. In the impugned Order, although the Respondent has concluded that the Petitioner at best may be liable to pay a late fee of Rs.100/- towards CGST and SGST each, had however imposed higher penalty by invoking Section 47(2) of the respective GST enactments.
6. The admitted facts of the case is that the Petitioner had failed to file the annual return in GSTR-09 for the Tax Period 2020-2021 and has not been able to file the same and therefore was issued with the Notice in GST DRC- 01A dated 20.07.2024.
____________ Page No. 3 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025
7. It is noticed that as per Sub-Section (2) to Section 44 of the respective GST enactments, a registered person cannot be allowed to furnish the annual return under Sub-Section (1) to Section 44 of the respective GST enactments for the Financial Year after expiry of the period of 3 years from the due date for furnishing of the said annual return i.e., the due date as per Rule 80 of the respective CGST and SGST Rules.
8. As per Rule 80(1) of the respective CGST and SGST Rules, the last date for 'furnishing annual return' in case of persons other than an Input Service Distributor, a person paying tax under Section 51 or Section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the Financial Year, with the audited financial statement for every Financial Year electronically, within such time and in such form and in such manner as may be prescribed i.e., 31 st Day of December following the end of the Financial Year in Form GSTR-9.
9. However, by Rule 80(1A) of the respective CGST and SGST Rules introduced/inserted with effect from 29.12.2021 vide Notification No.40/2021- ____________ Page No. 4 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 CT dated 29.12.2021, for the Financial Year 2020-2021, the annual return was to be furnished on or before the 28th day of February, 2022.
10. Rule 80(1A) of the respective CGST and SGST Rules was introduced/inserted vide Notification No.40/2021-CT dated 29.12.2021. Thus, the last date for filing the annual return for the tax period 2020-2021 would have expired on 28.02.2025 as per Rule 80(1A) of the respective GST Rules.
11. Rule 80(1A) of the respective CGST and SGST Rules as inserted vide Notification No.40/2021-CT dated 29.12.2021 is reproduced below:-
Rule 80(1A) of CGST Rules Rule 80(1A) of SGST Rules
80. Annual Return 80. Annual Return (1) ..... (1) .....
(1A) Notwithstanding anything (1A) Notwithstanding anything contained in sub-rule (1), for the contained in sub-rule (1), for the financial year 2020-2021 the said financial year 2020-2021 the said annual return shall be furnished on or annual return shall be furnished on or before the twenty-eighth day of before the twenty-eighth day of February, 2022. February, 2022.
12. Learned counsel for the Petitioner has placed reliance on the decision of this Court in Tvl.Srirenukambal Milk Centre Vs. The State Tax Officer, Chennai, rendered on 15.10.2024 in W.P.No.17232 of 2024 wherein dealing ____________ Page No. 5 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 with somewhat similar circumstances, this Court has passed the following order:-
“7. Considering the above submissions made by the learned counsel on either side and upon perusal of the materials, it is evident that the impugned show cause notice was uploaded on the GST Portal Tab. According to the petitioner, the petitioner was unaware of the issuance of the show cause notice through the GST Portal and the original of the said show cause notice was not furnished to them. In such circumstances, this Court is of the view that the impugned order came to be passed without affording any opportunity of personal hearing to the petitioner to establish its case, thereby violating the principles of natural justice and that it is just and necessary to provide an opportunity to the petitioner to establish their case on merits and in accordance with law.
8. For the reasons stated above, this Court is inclined to set aside the impugned orders dated 08.03.2024 and the consequential order dated 11.03.2024 passed by the respondent with the following directions:-
(i) The impugned order dated 08.03.2024 and the consequential order dated 11.03.2024 are set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay 10% of disputed tax amount to the respondent within a period of four weeks from today (15.10.2024) and the setting aside of the impugned order will take effect from the date of payment of the said amount.
(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of three ____________ Page No. 6 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 weeks from the date of receipt of copy of this order.
(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.
9. With the above directions, this writ petition is disposed of. No costs. Consequently, the connected miscellaneous petitions are also closed.”
13. Admittedly, the Petitioner has not filed the return till date in view of the statutory period of limitation prescribed under Section 47 of the respective GST Acts read with Rule 80(1A) of the respective GST Rules. However, the law on the subject is also clarified by the Hon'ble Supreme Court wherein it has been held that penalty should not be levied for technical and venial breach of the provisions.
14. In this connection, a reference is made to the decision of the Hon'ble Supreme Court in Hindustan Steel Limited Vs. State of Orissa, 1970 AIR 253/(1972) 83 ITR 26(SC). As far as late fee is concerned, the demand of late ____________ Page No. 7 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 fee under Section 47 of the respective GST enactments is also venial in nature when Sub-Clause (2) to Section 47 is invoked.
15. Considering the fact that the Petitioner is otherwise willing to file a return, this Court is inclined to quash the impugned Order dated 10.02.2025 and remit the case back to the Respondent to pass a fresh order to levy lesser penalty after giving due notice to the Petitioner by following the decision of the Hon'ble Supreme Court in Hindustan Steel Limited case (referred to supra).
16. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
23.09.2025 Neutral Citation : Yes / No arb To:
The State Tax Officer, Kelambakkam Assessment Circle, Room No.119, 1st Floor, No.46, Greenways Road, Raja Annamalaipuram, Chennai – 600 028.
C.SARAVANAN, J.
____________ Page No. 8 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm ) W.P.No.35962 of 2025 arb W.P.No.35962 of 2025 and W.M.P.Nos.40221 and 40222 of 2025 23.09.2025 ____________ Page No. 9 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/10/2025 10:20:35 pm )