2024 (2) TMI 795 - HC - GST

Rectification application - petitioner points out that 100% penalty was imposed although the show cause notice was issued under Section 73 - HELD THAT - On examining the notices on record it is clear that such notices were issued under Section 73 and not under Section 74 of the TNGST Act. Therefore the impugned order calls for interference as regards the imposition of penalty at 100% on the SGST dues. The impugned order is quashed only insofar as it pertains to imposition of penalty under the two heads indicated in the revenue abstract of the impugned order. As a corollary the matter is remanded to the assessing officer for re- consideration as regards the penalty imposed under the impugned order - Petition disposed off.

Summary

Issues involved: Challenge to order dated 01.12.2023 on rectification application under GST laws.

Details of the Judgment:

Issue 1: Rectification Application and Penalty Imposition
The petitioner, a civil works contractor registered under GST laws, received a notice in Form GST-ASMT-10 for discrepancies in the return, followed by a notice u/s 73 of the TNGST Act. An assessment order was issued on 04.09.2023, after which the petitioner applied for rectification on 20.11.2023, admitting a tax liability of Rs. 12,22,432. The petitioner sought relief from penalty, challenging the imposition of 100% penalty on SGST dues despite the notice being u/s 73. The impugned order was quashed to the extent of penalty imposition under the revenue abstract, remanding the matter for re-consideration by the assessing officer within two months from the date of the order.

Conclusion:
The High Court of Madras disposed of W.P.No.1848 of 2024 on the above terms, with the related W.M.P.Nos.1921 and 1922 of 2024 being closed as a consequence of the judgment.