GST Section 129 penalty reduced for technical breach, export incentives allowed despite procedural violations

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....The HC allowed the writ petition concerning GST penalty under Section 129. The petitioner had violated prescribed conditions but had voluntarily paid the penalty and successfully exported goods. The court determined that while the petitioner was liable for proceedings under Section 129, a lesser penalty was justified. The HC held that export incentives cannot be denied for technical and venial breaches, citing precedent that such minor violations should not result in denial of legitimate benefits. Despite availability of alternate appellate remedy under Section 107, the court exercised jurisdiction to prevent unnecessary litigation. The respondents were directed to appropriate Rs. 25,000 from the amount already paid by petitioner and allow adjustment of the balance against future tax liability.....