Late fee for the period from date of cancelation of registration to the date of its revocation - Goods and Services Tax - GST

To facilitate the trade, the Government has brought the Amnesty and issued Notification No. 03/2023-CT dated 31 March 2023 for revocation of cancellation of registration in case of non-filing of returns. In a few of our client s cases, after revocation of cancellation of registration, when the Company tried to file returns ( GSTR-1 3B) for the period from the effective date of cancellation of registration to the date of revocation, the GSTN system does not accept these returns ( GSTR-1 3B ), without paying Late Fee . In all these cases, registration was cancelled due to non-filing of returns and the Company has already paid the entire late fee up to the date of cancellation of registration. In this regard, against the levy of late fee, it may be submitted as under: - (1) For the period, when the registration was cancelled, the Company was not a registered person; hence, sections 37 , 39 and 47 of the CGST Act are not applicable. (2) As per the second proviso to Rule 29(1) , inserted with effect from 23.04.2019, all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration. Hence, the due date of furnishing of returns is decided through the II Proviso of the said Rule 29(1) . (3) In a similar case in Modicum Enterprise (OPC) Private Limited Vs. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax - 2022 (12) TMI 1041 - CALCUTTA HIGH COURT , the Hon ble Calcutta High Court held that late fee is not payable in such cases. (4) To pay the late fee for this period, appears to be illogical as well. Do we require to pay the late fee, which comes in Lacs in a couple of cases? Is there any other course of action since these returns should be filed within 30 days from the date of revocation? Thanks