Minimum penalty for delayed ST-3 returns confined to the prescribed weekly rate after recalculation of delay period

Delayed filing of ST-3 returns under the Finance Act, 1994 attracted penalty under section 77, but the Tribunal applied its earlier precedent and confined the levy to the minimum prescribed amount of Rs. 100 per week for the period of delay. The penalty originally imposed at Rs. 7,700 was therefore recalculated on the basis of the actual delay and restricted to Rs. 1,100, granting the assessee partial relief.

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Issues: Whether the penalty imposed for delayed filing of ST-3 returns under section 77 of the Finance Act, 1994 was liable to be reduced to the minimum prescribed penalty.

Analysis: The delay in filing the return was undisputed, but the Tribunal followed its earlier precedent on the same issue and held that the penalty had to be confined to the minimum amount calculated at Rs. 100 per week for the period of delay. On that basis, the penalty originally imposed at Rs. 7,700 was re-computed according to the period of delay and restricted to Rs. 1,100.

Conclusion: The penalty was reduced from Rs. 7,700 to Rs. 1,100 and the assessee obtained partial relief.

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