PENALTY UNDER SECTION 127-JURISDICTION & SUSTAINABILITY

[Sadanand Bulbule]

Dear experts

Power to impose penalty in certain cases.

127. Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 or section 74A or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

Section122 covers categorical offences and the amount of penalty is fixed for each such offence. That being the legal position, can penalty still be levied under Section 127 for the offences covered by Section 122? Does it not amount to by-passing the provisions of Section 122 which has clear-cut nature of offences? Does such penalty sustainable?

Plz clarify in detail.

AI Summary

GST penalties under Section 127 cannot be imposed for offenses already covered under Section 122's specific provisions A GST practitioner inquired whether penalties can be imposed under Section 127 for offenses already covered under Section 122, which prescribes specific penalties for categorical offenses. An expert clarified that Section 127 operates as a residuary provision for contraventions not specifically covered elsewhere, and using it for Section 122 offenses would be ultra vires. The discussion further explored that Section 127 grants guided discretion without fixed penalty amounts, requiring compliance with Section 126's proportionality principles and natural justice standards when determining penalty quantum.