Penalty orders under Section 125 GST quashed for lack of opportunity to be heard; matter remanded for fresh hearing

HC held that penalty orders under section 125 GST were quashed for failure to afford any opportunity of hearing and remanded the matter to the concerned authority to pass fresh orders after giving an opportunity of hearing in accordance with law. Earlier dismissal as time-barred was noted, but the petition was allowed by way of remand and the impugned orders dated 18.12.2024 and 28.07.2025 were set aside.

---

---

Petition challenges order dated 18.12.2024 imposing penalty of Rs.50,000 under Section 125 of the GST Act and order dated 28.07.2025 dismissing the appeal as being "beyond limitation." Petitioner contended the penalty was imposed without "opportunity of hearing" and that under Section 125 the "maximum penalty imposable is Rs.25,000/-", rendering the impugned order mechanical and contrary to the statutory mandate. Court found no record of any opportunity of hearing being afforded and quashed the orders dated 18.12.2024 and 28.07.2025. The matter was remanded to the authority concerned to pass a fresh order after giving an opportunity of hearing "in accordance with law." The writ petition was allowed on that basis.

---