100% Penalty Can’t Be Imposed If Notice Was Issued u/s 73 and Not u/s 74 | Madras HC

Case Details: K.S.Janarthanam v. Deputy State Tax Officer - [2024] 159 taxmann.com 329 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Ms Vijayalakshmi for the Petitioner.
  • K. Vasanthamala for the Respondent.

Facts of the Case

In present case, the petitioner was a civil works contractor and a registered person under the GST laws. It received a notice in Form GST-ASMT-10 with regard to discrepancies in the return filed by the petitioner followed by a notice under Section 73. Thereafter, an assessment order was issued and it filed writ petition against it by contending that 100% penalty was imposed although show cause notice was issued under section 73.

High Court Held

The Honorable High Court noted that the notice was issued under Section 73 and not under Section 74. Therefore, the impugned order would call for interference as regards the imposition of penalty at 100% on the dues. Thus, the Court held that matter to be remanded and directed the assessing officer to reconsider the penalty and provide a reasonable opportunity to the petitioner. After providing a reasonable opportunity to the petitioner, this exercise shall be completed within a period of two months from the date of receipt of a copy of this order.