Penalty for ST3 Return

[Raja krishnan]

Sir,

A export unit belatedly filed their ST3 during the period of 2013-2014 and after that they have paid applicable interest for the delay days...now department insist to applicable penalty. Whether it is correct...Please clarify

AI Summary

Export Unit Faces Penalty for Late ST3 Return Despite Paying Interest; Section 70(1) Late Fee Already Settled An export unit filed their ST3 return late for the 2013-2014 period and paid the applicable interest. The department is now insisting on a penalty. Respondents clarified that under Section 70(1) of the Finance Act, 1994, a late fee up to 20,000 is applicable for delayed filings, while a penalty up to 10,000 under Section 77(2) may also apply. However, if the late fee is paid, the penalty is typically not imposed. The distinction between late fees and penalties was emphasized, noting that paying the late fee usually concludes proceedings related to delayed submissions.