Delayed ST-3 return penalty waived where no business was carried on and the return would have been nil.

Delayed filing of quarterly ST-3 returns was treated as a procedural lapse where the assessee had not carried on business during the relevant period and the return would have shown nil turnover. The Tribunal noted that the statutory filing requirement remained, but on these facts the late filing caused no substantive prejudice and followed an earlier decision on similar circumstances. Penalty for the delay was waived, and relief was granted to the assessee.

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Issues: Whether penalty for delayed filing of quarterly ST-3 returns was sustainable where the assessee had not carried on business during the relevant period and the return would have been NIL.

Analysis: The assessee was required to file quarterly return under Section 70(1) of the Finance Act, 1994, but had filed it belatedly. The Tribunal noted that no business had been carried on during the period in question and, even if filed in time, the return would have disclosed NIL turnover. In these circumstances, the delay was treated as a procedural lapse, and the Tribunal followed its earlier decision on similar facts.

Conclusion: The penalty was waived and the appeal was allowed in favour of the assessee.

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