Sec 126 of CGST Act with regard to Penalties

[Krishna Murthy]

Sir, Sec 126 of CGST Act, General disciplines related to penalty, Sub Sec 6 says that the provision does not apply to a case where penalty is fixed as percentage or fixed amount. But, what could be a case where penalty is not fixed as percentage or fixed amount as penalty is always certain percentage of tax or fixed based on default committed.

AI Summary

Discretionary penalty under Section 126 requires procedural compliance and applies where penalty is not a fixed percentage or amount.
Section 126(6) governs cases where no fixed percentage or fixed amount of penalty is prescribed, enabling the authority to impose a discretionary penalty subject to the specific procedural requirements of the section, and distinguishing such cases from other provisions that mandate fixed penalties.