No General Penalty u/s 125 if Specific Penalty for Late Filing of GST Returns u/s 47 is Levied: Madras HC [Read Order]
The Petitioner claimed that the imposition of general penalty was procedurally flawed since no prior notice under Section 46 of the GST Act was served before initiation of penalty proceedings
![No General Penalty u/s 125 if Specific Penalty for Late Filing of GST Returns u/s 47 is Levied: Madras HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/Madras-High-Court-GST-GST-Returns-Penalty-TAXSCAN.jpg "No General Penalty u/s 125 if Specific Penalty for Late Filing of GST Returns u/s 47 is Levied: Madras HC [Read Order]")
The Madras High Court recently delivered a highly significant judgment clarifying that there can be no simultaneous applicability of late fees for belated filing of Goods and Service Tax ( GST ) returns under section 47 and general penalties under section 125 under the Tamil Nadu Goods and Services Tax ( TNGST ) Act, 2017. The case arose when Tvl. Jainsons Castors & Industrial...
The Madras High Court recently delivered a highly significant judgment clarifying that there can be no simultaneous applicability of late fees for belated filing of Goods and Service Tax ( GST ) returns under section 47 and general penalties under section 125 under the Tamil Nadu Goods and Services Tax ( TNGST ) Act, 2017.
The case arose when Tvl. Jainsons Castors & Industrial Products filed a writ petition and writ miscellaneous petition challenging the penalty imposed by the respondent Assistant Commissioner (ST), Ekkatuthangal Assessment Circle, under the TNGST Act.
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The petitioner, represented by M. Varun Pandian raised the contention that Section 47 exclusively governs the levy of late fees for delayed GST return filing and that since a late fee had already been imposed under this provision, the additional general penalty under Section 125 was unwarranted. The counsel further contended that an innate procedural flaw had occurred since no prior notice under Section 46 was issued before initiating penalty proceedings.
Meanwhile, Additional Government Pleader (Tax) C. Harsha Raj, defended the penalty asserting that the petitioner had failed to file annual returns under Section 44 of the Act. It was argued that the notice was appropriately issued under Section 47 read with Section 73, and that the general penalty under Section 125 was justified due to the petitioner’s failure to disclose the full turnover details.
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The single-judge Bench of Justice Krishnan Ramasamy observed that Section 47(2) of the Act explicitly provided for the levy of a late fee for delays in filing GST returns. The Court observed that this provision serves as the specific penalty mechanism for such defaults whereas section 125 is applicable only when no other specific penalty is prescribed under the Act.
Since the Revenue had already levied the late fee under Section 47, the general penalty under Section 125 lacked legal justification, thus ruling that two separate penalties cannot be levied for the same default.
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Accordingly, the Court quashed the general penalty of ₹50,000 inclusive of ₹25,000 CGST and ₹25,000 SGST while upholding the applicability of late fee imposed under Section 47.
To Read the full text of the Order CLICK HERE
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