TaxTMI 
TaxTMI 
All orders imposing unwarranted penalty under Section 129 /130 of CGST Act 2017 requires a revisit if adverse order is passed by first appellate authority.
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....ll orders imposing unwarranted penalty under Section 129 /130 of CGST Act 2017 requires a revisit if adverse order is passed by first appellate authority.<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 19-8-2026<br>It is most unfortunate that the concept of filing the second appeal under GST laws was only in paper during 01/07/2017 till 23/09/2025. It is really an injustice ....
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....for the affected taxpayers which is possible to cure now only during August as well as September 2026. It is observed that required awareness is not present amongst tax professionals as well as taxpayers as the appeals being filed at GSTAT portal are far less when compared with the actual requirements. At the same time, it is fortunate that the GSTAT Portal is working fine now and appeals are file....
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....d at an approximate rate of around 200 appeals per working day during August 2026. Filing the condonation of delay is a must for the appeals pertaining to the period up to 30/04/2026, if not filed by 31/07/2026 or with generation of token by 31/07/2026 being an exception. It does not mean that in case the first appellate authority order is dated up to 30/04/2026, but no appeal was filed by 31/07/2....
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....026 have already lost their case. For all orders in the first appeal passed during the period ending on 30/04/2026 may file appeal with condonation of delay as contained in section 112 (6) before 30/09/2026 seeking relief appropriately. This message is very important as once the final deadline of condonation of delay is also missed, the orders of the first appellate authority become final and i....
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....n case of any tax/interest/penalty is payable as per first appellate authority order, the same is fully recoverable from the taxpayer. The trigger for this article is the recent order passed by the GSTAT Bench, Thiruvananthapuram on 14/08/2026. In this case, a partnership firm transported goods within two locations of Kerala on 13/06/2022 with proper delivery challan dated 13/06/2022 as the goods ....
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....were only transported to their Godown situated in the same state. The vehicle was intercepted by officials on 13/06/2022 and goods were detained for non -availability of the E Way bill. There was no demand on GST but a penalty of Rs.1,34,640 was imposed. In order to ensure release of goods, the taxpayer paid the penalty on 14/06/2022 itself and preferred the first appeal before the Joint Commissio....
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....ner (Appeals). As usual, the appeal was simply rejected by the first appellate authority on 02/11/2022. Aggrieved by the above, the taxpayer approached the Thiruvananthapuram bench GSTAT. The appeal was heard through virtual mode on 31/07/2026 and the order was passed on 14/08/2026 by the division bench. Case Reference: M S Steels Vs. The Commissioner of Kerala State GST. The case was decided a....
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....fter analysis several aspects which are summarized for the benefit of the readers. Section 7 (1) (a): There is no consideration when goods are transported to the depot of the same taxpayer and accordingly, it is not a supply. Section 9 is also held as not applicable in this case as Section 7 (1) (a) is not applicable. Section 129 provides for a penalty based on the value of goods supplied and a....
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....s the value was nil, no GST was demanded under the Show Cause Notice. The best part of this case is that except the non -availability of e way bill, there were no other allegation on the taxpayer either in SCN or OIO or even the OIA. The operative portion of the GSTAT order reads as "9. In view of the above observations and the settled legal position, we answer the question of law (as framed in....
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.... para 1.0 above) in the negative and hold that: Penalty under section 129 of Central Goods and Services Act / Kerala Goods and Services Act 2017 is not leviable on the registered person, for transport of goods without e-way bill, when such transport was undertaken on account of stock transfer. 10.Based on the above ratio and findings, the following order is passed: The impugned Order-in-appe....
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....al is set aside and the appeals of M/s. M.S. Steels are allowed, with consequential relief". The order of the GSTAT on section 129 gives us lot of take aways on identical cases which are spread all over India. It is the most appropriate time for all taxpayers as this decision of the division bench at Thiruvananthapuram has come out only a few days back to seek required relief on identical situa....
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....tions. The benches have started passing orders now and the decisions need vide publicity. The field formations all over India have been levying huge and incorrect penalties in the initial days which prompted the CBIC to issue clarifications from time to time to desist from levying maximum penalties in all the cases uniformly. Despite this, GST officials continued to levy excess penalties till r....
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....ecently. It is expected that as the GSTAT has decided the issue and ordered for necessary relief to the affected taxpayer, the issues are no more res-integra. The decision of this bench is applicable for all identical cases all over India. Hence I make the following two appeals. Taxpayers: For all live cases, this decision may be quoted to the dealing officials which is binding on them as the C....
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....GST law is common for all the States. Tax officials: Irrespective of whatever stand on 129 as well as 130 was taken by field formation till 14/08/2026, it is appealed to all field formations to desist from levying abnormal and huge penalties in incorrect manner as the taxpayer is expected to get full relief on the second appeal. =============<br> Scholarly articles for knowledge sharing by a....
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....uthors, experts, professionals ....