https://www.taxtmi.com/caselaws?id=422814 The AP HC set aside penalty orders imposed under CGST Act Section 127 for wrongly availed input tax credit. The court held that penalties imposed through rectification under Section 161 without providing reasonable opportunity of hearing violated principles of natural justice. The original notice dated 13.08.2020 under Rule 100(1) did not include penalty liability, which was later added through rectification adversely affecting the assessee. Since Section 62 only covers interest and late fee liability, not penalties, and penalty imposition requires proper hearing under Section 127, the impugned orders were quashed. Respondents permitted to proceed with fresh notice following due process. en-us Thu, 05 May 2022 00:00:00 +0530 Thu, 03 Apr 2025 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422814 The AP HC set aside penalty orders imposed under CGST Act Section 127 for wrongly availed input tax credit. The court held that penalties imposed through rectification under Section 161 without providing reasonable opportunity of hearing violated principles of natural justice. The original notice dated 13.08.2020 under Rule 100(1) did not include penalty liability, which was later added through rectification adversely affecting the assessee. Since Section 62 only covers interest and late fee liability, not penalties, and penalty imposition requires proper hearing under Section 127, the impugned orders were quashed. Respondents permitted to proceed with fresh notice following due process. Case-Laws GST Thu, 05 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422814