Penalty order under GST set aside and treated as show cause notice, with fresh opportunity to file objections.

A penalty order under Section 122(2)(b) of the CGST Act was interfered with because the taxpayer had already paid the tax demand with interest and the earlier opportunity to contest the levy was not effectively availed. The Court accepted the explanation that the absence of a permanent Commissioner during the relevant period affected the earlier response and granted one final opportunity to file objections before the assessing authority. The impugned order was set aside, treated as a show cause notice, and the matter was remitted for reconsideration after hearing the petitioner in accordance with law.

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Issues: Whether the penalty order levying penalty under Section 122(2)(b) of the Central Goods and Services Tax Act, 2017 warranted interference and whether the petitioner should be given an opportunity to file objections.

Analysis: The petitioner had paid the tax demand along with interest, and the Court took note of the explanation that the earlier opportunity to contest the levy was not effectively availed due to the absence of a permanent Commissioner during the relevant period. In the circumstances, the Court found it appropriate to provide one final opportunity to place objections before the assessing authority, instead of sustaining the penalty order as such.

Conclusion: The impugned order was set aside and treated as a show cause notice, with liberty to file objections and have the matter reconsidered in accordance with law after hearing.

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