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"GENERAL PENALTHY: SECTION 125"
GST Department levies general penalty U/s 125 in many cases.
What is the view of High Courts in such cases?
Can Penalty be levied in all cases or is there any solution for the same?
1. Rathore Building Material - Allahabad High Court
(2023) 13 CENTAX 185
Where petitioner complied with terms of show cause notice by furnishing returns in time provided, there was no lawful justification to impose penalty under section 125
returning finding that reply to show cause notice was not tendered, thus, order imposing penalty was to be set aside.
2. Sonjoli Construction Co. - Rajasthan High Court
(2023) 2 CENTAX 314
Enquiry notice under section 125(1)(i) of CGST Act, 2017 issued after cut-off date i.e. 30-6-2019 would not act as bar to filing of declaration under 'voluntary disclosure' category'
3. Satyendra Singh Kushwah - Jharkhand High Court
(2023) 10 TMI 414
Where summons issued by revenue authority has been properly replied to and GST had already been paid, proceedings U/s 125 or 132, which dealt with penalties and punishment, cannot be initiated against them.
4. Atlantic Care Chemicals Pvt. Ltd. - Kerala High Court
(2023) 10 TMI 145
Penalty U/s 125 not imposable for mere classification dispute.
5. Tirthamoyee Aluminium Products - Tripura High Court
(2021) 50 GSTL 496
Wrong mentioning of distance from place of transportation upto place of ultimate delivery as 470 kms. instead of actual distance of 1470 kms. which resulted automatic generation of E-way Bill with validity
period of five days instead of 15 days.
As per this Circular 14-Sept-2018, in case the goods are accompanied by an invoice as also an E-way bill, proceedings U/s129 should not be initiated if there is a error of one or two digits in a document number mentioned in the E-way bill.
In such a situation, at best, penalty of ₹ 500 & 1000/- under State and Central GST may be collected under Section 125 of the Act.
I hope you will find this useful.
Thanks
Abhishek Raja Ram