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2023 (11) TMI 1020 - ALLAHABAD HIGH COURTChallenge to order of penalty levied under Section 122 of GST Act - delay in depositing the tax so collected beyond a period of three months - HELD THAT:- There is no material on record or even an allegation against the petitioner that the amount was collected but not paid or evaded, but only allegation is that the amount was not pad within the time prescribed and was paid after a delay. Even if the said allegation for the sake of argument is treated to be correct, the only penalty imposable against the petitioner would be Rs. 10,000/- as no amount of tax has admittedly been evaded by the petitioner. Even otherwise, the Appellate Authority or even the Assessing Authority has failed in following the general disciplines relating to penalty, specifically the mandate of Section 126(2) of the Act. In the present case, in terms of the Notification dated 01.06.2021, the Government in exercise of its powers under Section 128 of the Act had issued guidelines waiving the late fee for filing the returns, this factor had to be validly considered while imposing the penalty in terms of mandate of Section 126(2) of the Act. In the facts of case, the maximum penalty imposable was Rs. 10,000/- or the tax evaded, whichever was more; there being no allegation of tax evasion, the maximum penalty that could have been imposed was Rs. 10,000/- which could even be lower than the said amount if the Taxing Authority as well as the Assessing Authority had considered the mandate of Section 126(2) of the Act read with Notification dated 01.06.2021. The said exercise clearly has not been done. The petitioner states that the petitioner is ready and willing to accept the penalty of Rs. 10,000/- to give quietus to the litigation - Considering the scope of the provisions as discussed herein above as well as the offer made by the petitioner, the orders impugned are set aside. The petitioner shall pay a penalty of Rs. 10,000/- in both the cases within a period of two weeks from today by depositing the same with the department - Petition disposed off.
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