Syed Shabbir Ahmad Vs State of U.P. (Allahabad High Court)
The Allahabad High Court examined a petition challenging a penalty order dated 31.05.2024 passed under Section 125 of the GST Act, wherein ₹25,000 each was imposed under CGST and SGST, totaling ₹50,000. The petitioner’s appeal against this order had earlier been dismissed on 04.12.2024 as time-barred. The petitioner contended that Section 125 prescribes a maximum penalty of ₹25,000 and does not permit separate penalties under both CGST and SGST. Upon consideration, the Court held that imposing ₹25,000 under each head was not justified under the statutory provision. It ruled that the total penalty cannot exceed ₹25,000 as prescribed under Section 125. Consequently, the Court set aside the order to the extent it imposed separate penalties under CGST and SGST and clarified that the petitioner is liable to pay only ₹25,000 in total. The petition was disposed of accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the petitioner and learned Standing Counsel for the State.
2. Present petition has been filed by the petitioner challenging the order dated 31.05.2024 passed under Section 125 of GST Act whereby penalty of Rs.25,000/- was imposed under CGST and Rs.25,000/- was imposed as SGST, total Rs.50,000/- was imposed as penalty.
