Can Appeal order rectification apply for Penalty Under section 125

[SHARAD ANADA]

The Mobile squad officer has issued demand order u/s. 129 of CGST Act,2017. Aggrieved by the order the RTP has filed an Appeal before First Appellate Authority(FAA). The FAA has allowed the Appeal but he imposed CGST penalty of Rs. 25000/- and SGST Penalty of Rs.25000/- under Section 125.
Can FAA imposed penalty under section 125 which was never demanded in original order and secondly general penalty under section 125 can be imposed only where no separate penalty is provided. However specific penalty of 200% of tax amount has been provided under section 129.
Can RTP file Appeal order rectification Application under section 161 for drop of penalty under section 125

AI Summary

General penalty under GST: dispute over section 125 penalty added in appeal despite specific section 129 penalty framework. A GST dispute concerns whether the First Appellate Authority, while allowing an appeal against a demand order passed under section 129 of the CGST Act, can also impose a general penalty under section 125 when that penalty was not part of the original demand. The issue is whether section 125 can be invoked where a specific penalty mechanism is already provided under section 129, and whether the resulting penalty order can be challenged through a rectification application under section 161 for deletion of the section 125 penalty.