Tvl. Jainsons Castors & Industrial Products Vs Assistant Commissioner (ST) (Madras High Court)
Summary: The Madras High Court addressed a writ petition challenging the penalty imposed by the Assistant Commissioner (ST) under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017. The petitioner argued that only a late fee under Section 47 could be levied for the delayed filing of returns and that a general penalty under Section 125 was inapplicable. Additionally, they contended that no prior notice was issued as required under Section 46 before the penalty proceedings. The respondent maintained that the notice was appropriately issued under Section 47 read with Section 73 due to the petitioner’s failure to file annual returns under Section 44. The court clarified that Section 47 specifically governs late fees for delayed filings, making the imposition of an additional penalty under Section 125 unwarranted. Consequently, the court set aside the general penalty but upheld the late fee. The writ petition was partly allowed.
Legal Provisions Examined
Section 47 of the CGST Act, 2017 – Levy of Late Fee
Section 47 prescribes late fees for failing to furnish returns within the prescribed due date. Sub-section (1) states that a taxpayer who fails to file a return under Sections 39, 45, or 52 must pay a late fee of Rs. 100 per day per Act (CGST and SGST/UTGST), subject to a maximum of Rs. 5,000.
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