Penalty Order Invalidated: GST Authorities Fail to Follow Due Process, Violate Principles of Natural Justice HC quashed penalty order under GST Act for procedural irregularities. Court found penalty imposition was mechanical and exceeded statutory limits without ...
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Penalty Order Invalidated: GST Authorities Fail to Follow Due Process, Violate Principles of Natural Justice
HC quashed penalty order under GST Act for procedural irregularities. Court found penalty imposition was mechanical and exceeded statutory limits without providing hearing opportunity. Remanded matter for fresh order with proper legal procedure, ensuring petitioner's right to be heard is respected. Writ petition allowed, directing reconsideration of penalty.
The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., quashed the order dated 20.01.2023 imposing a penalty of Rs.50,000 under Section 125 of the GST Act. The petitioner contended that the penalty was imposed "without even giving an opportunity of hearing" and exceeded the maximum limit of Rs.25,000 prescribed under Section 125. The Court held that the order was "mechanical" and contrary to the statutory mandate. Accordingly, the matter was remanded for a fresh order to be passed "after giving an opportunity of hearing in accordance with law." The writ petition was allowed on these grounds.
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