Vikas Kumar Omar Vs Principal Commissioner CGST Commissionerate Rohtak And Another (Panjab Haryana High Court)
The Punjab and Haryana High Court considered a writ petition challenging an order dated 04.12.2025 insofar as it imposed a penalty on the petitioner under Section 122 of the Central Goods and Services Tax Act, 2017. The petitioner contended that no show cause notice (SCN) had been issued before the initiation of penalty proceedings and, therefore, the penalty order violated the principles of natural justice.
During the hearing, counsel for the revenue did not dispute that no SCN had been issued to the petitioner in relation to the proceedings under Section 122 of the Act.
The Court noted that Section 122 provides for penalty for certain offences under the CGST Act, while Section 126(3) lays down the general disciplines relating to penalty and expressly provides that no penalty shall be imposed on any person without giving him an opportunity of being heard.
The Court found that, in the present case, the respondents had imposed the penalty without issuing any show cause notice to the petitioner. It held that this constituted apparent non-compliance with Section 126(3) of the CGST Act, 2017. According to the Court, such non-compliance resulted in a breach of the principles of natural justice.
