Maximum Penalty of Rs. 10,000 Shall be Levied for Delay in Payment of Tax Amount; Penalty u/s 122 to be Set Aside | HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 28 November, 2023
Latest from Taxmann
Case Details: Clear Secured Services (P.) Ltd. v. Commissioner, State Tax GST - [2023] 156 taxmann.com 645 (Allahabad)
Judiciary and Counsel Details
-
- Pankaj Bhatia, J.
-
Jameel Ahmad for the Petitioner.
Facts of the Case
In the present case, the petitioner received a notice alleging that it had not paid GST within prescribed time and was liable for payment of penalty of approx. Rs. 28 lacs each in CGST and SGST in terms of Section 122(1)(iii). The petitioner was not able to reply on account of COVID-19 and consequently, ex-parte order was passed against petitioner imposing penalty indicated in show-cause-notice. It filed appeal but the same was dismissed and thus, it filed writ petition against the demand.
High Court Held
The Honorable High Court noted that there was no material on record or even an allegation against the petitioner that amount was collected but not paid or evaded, but only allegation was that amount was not paid within time prescribed and was paid after a delay.
In such case, the maximum punishment would be Rs 10,000 but the Appellate Authority had failed in following general disciplines relating to penalty, specifically provided under Section 126(2). Therefore, the Court held that the said order imposing penalty was to be set aside and the petitioner was directed to pay Rs. 10,000 as penalty.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
