Tribunal Waives Late Fees for GSTIN Registration Delay The Tribunal set aside the late fee charges imposed on the appellant for delay in filing bills of entry during the transition period of GSTIN ...
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Tribunal Waives Late Fees for GSTIN Registration Delay
The Tribunal set aside the late fee charges imposed on the appellant for delay in filing bills of entry during the transition period of GSTIN registration. Acknowledging the challenges faced by importers/exporters due to technical difficulties and system failures during the GST implementation transition, the Tribunal referenced relevant notifications and circulars to conclude that the late fee charges were unjustified. Emphasizing non-penalization for delays caused by system defects, the Tribunal allowed the appeal and waived the late fee charges, considering the complexities of complying with the new GST law during the transition period.
Issues: Late fee charges imposed for delay in filing bills of entry during the transition period of GSTIN registration.
Analysis: 1. Late Fee Charges Imposed: The appellant filed an appeal against the late fee charges imposed for the delay in filing bills of entry during the transition period of GSTIN registration. The appellant argued that technical glitches in the system caused delays in obtaining GSTIN registration. The appellant applied for registration on 3.7.2017, but due to system issues, they received the registration on 26.7.2017. Consequently, the bills of entry were filed on 2.8.2017 and 3.8.2017, leading to the imposition of a late fee of Rs. 14,55,000. The appellant contended that the delay was due to system-related defects and confusion during the transition period of GST implementation.
2. Legal Arguments: The appellant cited Circular No. 12/2017-Cus. dated 31.8.2017, issued by CBEC, which stated that importers should not be penalized for delays caused by system-related defects. The appellant requested the late fee charges to be set aside based on this circular. On the contrary, the ld. AR supported the late fee charges, emphasizing that the appellant received GSTIN registration on 26.7.2017 and should have filed the bills of entry promptly.
3. Judgment: The Tribunal considered the challenges faced by importers/exporters during the transition period of GST implementation, acknowledging technical difficulties and system failures. Referring to Notification No. 26/2017, which allows for waiving late fees with sufficient reasons, the Tribunal concluded that the late fee charges imposed were not justified. Citing the circular issued by the Board, emphasizing non-penalization for delays due to system defects, the Tribunal set aside the impugned order and allowed the appeal, providing consequential relief if necessary. The Tribunal highlighted the challenges faced by the public in understanding and complying with the new GST law during the transition period, leading to the decision to waive the late fee charges in this case.
This detailed analysis of the judgment addresses the issues involved, legal arguments presented, and the Tribunal's reasoning for setting aside the late fee charges imposed during the transition period of GSTIN registration.
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