Penalty Not Justified For Procedural Lapses Like Late Filing Of Returns In Absence Of Fraud, Negligence Or Intent To Evade Taxes : CESTAT

The CESTAT held that penalties under GST cannot be imposed merely for procedural lapses such as late filing of returns, unless there is evidence of fraud, negligence, or an intention to evade taxes. The tribunal emphasized the principle of proportionality, noting that penal consequences should follow culpable conduct, not mere errors or delays. The decision underscores the need for fair approach in penalty imposition under indirect tax laws and protects taxpayers against mechanical penal action.