GST Rulings

Can penalty alone be challenged when GST demand is accepted?

Order of the High Court of Madras

[dated 12.08.2024, in Aatral Associates v. State Tax Officer, from W.P. no. 21544 of 2024]

Demand was confirmed against the petitioner for both tax and penalty. Petitioner accepted and paid the tax portion. However, he filed an appeal against the penalty. Appellate authority rejected the appeal, citing that penalty alone cannot be challenged when tax demand was accepted.

The Hon'ble Court held the order of the appellate authority, rejecting the appeal, as not proper.

Comments

Whether the impugned order was passed under section 73 or section 74 of the CGST Act is not evident from the order of the Hon'ble Court. However, whether penalty alone can be challenged is lingering in the minds of several taxpayers, particularly in the context of waiver of interest and penalty under section 128A ibid, which is expected to be brought into force shortly. The said order of the Hon'ble High Court of Madras appears to give a pointer on this issue.

Srinivasan V, Advocate

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Srinivasan V, Advocate
Tags: GST | Penalty
1 year ago

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