Section 132 proceedings needs to be quashed after Closure of Peoceedings Recorded by GST department

[Diksha Sabarwal]

Hi Experts,

Closure of Proceedings were recorded by the department after filing of DRC-03 under Section 74 and the proceedings of the GST were dropped by the department. Now the question is what will happen to the Chargesheet filed and proceedings under Section 132 proceedings. How it will be ending after Closure of Proceedings are recorded. Whether Compounding application needed to be moved or closure of proceedings have to be filed with affidavit on closure of proceedings to magistrate for end of trial?

AI Summary

Merits-based GST exoneration can support termination of criminal prosecution, while adjudication closure alone does not automatically end proceedings.
Closure or dropping of GST adjudication under Section 74 does not automatically end prosecution under Section 132, since the proceedings are legally distinct. A separate judicial order is generally required to terminate the criminal case. Where the closure order exonerates the assessee on merits and rejects the factual basis of alleged evasion, fraud, or suppression, it may be produced with DRC-03, payment evidence, and departmental communications to seek discharge or closure, followed by quashing if necessary. Compounding under Section 138 is an alternative settlement mechanism, not an automatic requirement.