Tvl. Platinum Marketing Vs Assistant Commissioner (ST) FAC (Madras High Court)
The writ petition was filed challenging an order dated 17.04.2024 confirming a proposal in a Show Cause Notice dated 06.01.2023. The petitioner had been imposed a general penalty of ₹50,000 (₹25,000 each under SGST and CGST) under Section 125 of the respective GST enactments, along with late fee under Section 47, for non-filing of Annual Return in GSTR-9/GSTR-9C within the statutory due date. However, the proposal relating to late fee was dropped since the petitioner opted to pay a reduced late fee of ₹20,000 (₹10,000 each under CGST and SGST) in accordance with Notification No.7/2023-Central Tax dated 31.03.2023 as amended by Notification No.25/2023-Central Tax dated 17.07.2023.
The issue before the Court was confined to the validity of imposing a general penalty under Section 125 in addition to the late fee already paid. The Court noted that the issue was covered by its earlier decision in Kandan Hardware Mart, wherein it was held that late fee under Section 47(2) is penal in nature and once levied at the concessional rate under the above notifications, there is no scope for imposing an additional general penalty under Section 125. Relying on that decision, the Court quashed the impugned order insofar as it related to levy of general penalty. The writ petition was allowed with consequential relief and no costs.
