Authority: High Court of Judicature at Madras

Order Date: 06-07-2026

Case Overview

  • Petitioner: Industrial Refractories, represented by Proprietor Ms. Velu Jamuna, Cuddalore, Tamil Nadu.
  • Respondents: (1) State Tax Officer, Virudhachalam Assessment Circle, Commercial Taxes; (2) Assistant Commissioner (ST), Virudhachalam Commercial Taxes Office; (3) Branch Head, ICICI Bank Limited, Virudhachalam.
  • The petition under Article 226 challenged an order dated 24‑07‑2025 that imposed a late fee and a general penalty for non‑filing of GST annual returns for FY 2020‑21 (GSTIN 33APYPJ0717N1ZF).
  • Petitioner argued the late fee was mis‑computed and that the correct amount is Rs 1,15,604, and contended that a general penalty cannot be levied where a late fee is imposed.
  • Government counsel for respondents concurred that the correct late fee is Rs 1,15,604 and did not dispute the penalty issue.
  • The Court referred to the precedent M/s Kandan Hardware Mart v. Assistant Commissioner (ST) (FAC) (2026) 38 Centax 332 (Mad.) which held that late fee is penal in nature and a general penalty cannot be imposed simultaneously.

Final Outcome

  • The Court set aside the general penalty portion of the impugned order as contrary to the Kandan Hardware judgment.
  • The Court recorded that the petitioner shall pay the correct late fee of Rs 1,15,604 within 30 days of receipt of the order copy.
  • No costs were awarded.
  • All connected miscellaneous petitions were closed.

Topics: GST Penalty, Tax Litigation