The Allahabad High Court has quashed the order imposing a penalty of Rs. 50K under Section 125 GST Act.
The bench of Justice Pankaj Bhatia has observed that no opportunity of hearing has been granted or is reflected in the order, the order was quashed. The matter was remanded to the authority concerned to pass a fresh order after giving an opportunity of hearing in accordance with law.
The petitioner has challenged an order by which an amount of Rs.50,000 has been imposed under section 125 of the GST Act.
Section 125 of the CGST/SGST Act provides that any person who contravenes any provision of the Act or the rules made under this Act for which no separate penalty has been prescribed shall be punishable with a penalty that may extend to Rs. 25,000.
The petitioner has submitted that a penalty of Rs.50,000 has been imposed under section 125 GST Act without even giving an opportunity of hearing. In terms of Section 125 also, a maximum penalty imposable is Rs.25000 and the order is mechanical in imposing the penalty, which is also contrary to the mandate of Section 125 of the GST.
The court allowed the petition and ruled in favour of the assessee.
Case Details
Case Title: M/S Sriram Traders Versus State Of U.P.
Case No.: Writ Tax No. – 327 Of 2025
Date: 11.4.2025
Counsel For Petitioner: Savitra Vardhan Singh
Counsel For Respondent: C.S.C
