TaxTMI 
TaxTMI 
TaxTMI 
Old article by the Author
Exploring GST Law: Section 122 Highlights Penalties for Tax Evasion; Importance of Fair Adjudication Under Sections 73 & 74
The article discusses the evolving nature of the Goods and Services Tax (GST) law and its penal provisions, particularly under Section 122. It highlights the challenges of tax evasion and the need for effective penalties to safeguard revenue. Section 122 outlines penalties for various offences, including tax evasion and fraudulent activities. The article emphasizes the importance of proper adjudication under Sections 73 and 74 before imposing penalties under Section 122, to avoid double jeopardy. It underscores the necessity for transparent and fair adjudication processes to ensure justice and compliance with the GST Act. - (AI Summary)
The following judgement approves the views expressed in the above article three years back.
Increase in the quantum of penalty - penalty imposed in excess of tax demanded - petitioner is ready to pay the tax and interest as demanded in the impugned order - HELD THAT:- A perusal of the impugned orders passed by the respondents will indicate that the following provisions have not been considered or appreciated while passing the impugned orders which are clearly illegal, arbitrary and contrary to the provisions contained in Sections 74 and 75 of the KGST Act and are without jurisdiction or authority of law and the same deserve to be set aside, insofar as they relate to imposing and confirming a penalty of Rs. 6,05,17,933/- and the matter remitted back to the 2nd respondent for reconsideration afresh in accordance with law to the limited / restricted extent of aforesaid penalty payable by the petitioner.
A perusal of the impugned orders will indicate that the statutory provisions and underlying principles have not been considered or appreciated by the respondents, who have illegally and arbitrarily not only demanded higher penalty from the petitioner in excess of what was demanded in the show cause notice but also demanded penalty in excess of the tax which was confirmed by the respondents themselves in the impugned orders and the invocation of Section 122 of the KGST / CGST Act in the impugned orders also being illegal and arbitrary and contrary to the aforesaid provisions warranting interference by this Court in the present petition.
The impugned orders passed by the respondents at Annexures - A and B deserve to be set aside and the matter be remitted back to the 2ndrespondent for reconsideration afresh in accordance with law - Petition allowed in part.
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