General Penalty Invalid Where GST Late Fee Already Applies | HC

Case Details: NKR Traders vs. State Tax Officer - [2026] 187 taxmann.com 187 (Madras)

Judiciary and Counsel Details

• G. R. Swaminathan, J.
• E. Sathiyaraj for the Petitioner.
• T.N.C. Kaushik, AGP for the Respondent.

Facts of the Case

The petitioner failed to file GST returns for the financial year 2020-21 and was subjected to a late fee under the GST law. Subsequently, the tax authorities also imposed a general penalty under Section 125 and attached the petitioner’s bank account for recovery. The petitioner challenged the levy of a general penalty on the ground that where a specific late fee was prescribed for non-filing of returns, imposition of an additional general penalty was impermissible. The petitioner further sought the lifting of the bank account attachment while expressing willingness to pay the applicable late fee.

High Court Held

The High Court held that the issue was squarely covered by its earlier decision in Ms. Kandan Hardware Mart, wherein it was held that a general penalty under Section 125 could be imposed only where no specific penalty was provided under the GST law. It was observed that since the petitioner was already liable to pay a late fee under Section 47 for non-filing of returns, the levy of a general penalty could not be sustained. Accordingly, the impugned order was quashed to the extent it imposed a general penalty, and the petitioner’s liability was confined to payment of the late fee alone. The Court further directed that the attachment of the petitioner’s bank account be lifted upon deposit of the applicable late fee for the financial year 2020-21.

List of Cases Reviewed

• Ms. Kandan Hardware Mart v. Asstt. Commissioner (ST) (FAC) [2026] 182 taxmann.com 632/114 GST 267 (Mad) (Para 4), followed

List of Cases Referred to

• Ms. Kandan Hardware Mart v. Asstt. Commissioner (ST) (FAC) [2026] 182 taxmann.com 632/114 GST 267 (Mad) (para 3).