General penalty cannot be imposed for delayed GST return filing when the statute already provides a specific late fee.

For delayed filing of annual returns, general penalty under the residuary penalty provision could not be sustained where the GST statute already prescribed a specific late fee for the same default. The court applied the settled principle that a general penalty operates only in the absence of a specific statutory consequence for the contravention. The general penalty was set aside, while liability to pay the late fee for delayed filing remained intact.

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Issues: Whether, for belated filing of annual returns for the 2020-21 assessment period, general penalty under Section 125 of the Tamil Nadu Goods and Services Tax Act, 2017 could be sustained when late fee under Section 47 had already been levied, and whether the levy was liable to be interfered with to that extent.

Analysis: The impugned demand was examined in the light of the settled view that Section 125 operates only in the absence of any other specific penal consequence under the GST enactment. The Court followed its earlier decision holding that where the statute itself provides for late fee for delayed filing, imposition of general penalty for the same default is not sustainable. On that reasoning, the levy of general penalty could not survive, while the liability to pay the prescribed late fee remained unaffected.

Conclusion: The general penalty under Section 125 was set aside, and the petitioner was held liable only to pay the late fee under Section 47.

Final Conclusion: The petition succeeded to the extent of deleting the general penalty, but the statutory late fee for delayed filing was upheld, with consequential relief as to the attachment of the bank account subject to compliance.

Ratio Decidendi: Where a GST enactment specifically provides for late fee for delayed filing of returns, general penalty cannot be imposed for the same default under the residuary penalty provision.

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