Shailendra Kumar Singh Vs Mansi Udhyog (GSTAT Agra)
Summary: The Goods and Services Tax Appellate Tribunal (GSTAT), State Bench Agra, summarily dismissed a second appeal filed by the State Revenue against Mansi Udhyog under Section 112 of the CGST/UPGST Acts. The dispute arose from a search conducted under Section 67, following which the proper officer imposed a penalty of ₹95,480 and a fine of ₹50,000, aggregating to ₹1,45,480, by invoking Section 130(2) read with Section 122. The first appellate authority held that although the department could initiate proceedings under Sections 73 or 74 in a search case, the penalty and fine imposed under Sections 130(2) and 122 were not sustainable.
The Revenue challenged the first appellate authority’s decision before GSTAT, but its appeal was confined exclusively to the ₹50,000 fine. It did not challenge the findings concerning the ₹95,480 penalty. At the admission hearing, the State was represented by Shri Mukesh Kumar, Authorised Representative, while Shri Saket Bindal, Advocate, appeared for the respondent and accepted notice. The Tribunal examined the grounds of appeal and accompanying documents and heard both representatives.
The Division Bench comprising Judicial Member Ajeet Singh and Technical Member Vivek Kumar questioned how an appeal restricted to the fine could be entertained when the Revenue had left the connected penalty finding unchallenged. On this basis, it held that the Revenue’s second appeal was not maintainable and dismissed it summarily under Section 112 of the CGST/UPGST Acts. The order does not undertake an independent substantive examination of the confiscation provisions; its operative conclusion rests on the limited scope of the departmental challenge.
FULL TEXT OF THE ORIGINAL ORDER OF GSTAT AGRA
Case called out for hearing on admission.
Learned DR Sh. Mukesh Kumar, appeared before the bench on behalf of appellant/state.
Sh. Saket Bindal, Advocate, has appeared on behalf of respondent and took the notice.
Bothe the authorised representatives have been heard on admission.
Grounds of appeal and relevant documents annexed thereto are also perused.
Present second appeal u/s 112 of CGST/UPGST, Act, has been preferred assailing the impugned order passed by first appellate authority vide which amount of fine and penalty imposed by learned proper officer u/s 130(2) read with section 122 of CGST/UPGST, Act, vide which in a search case conducted u/s 67 of CGST/UPGST, Act, a penalty of Rs. 95,480/- and fine of Rs. 50,000/- total in 1,45,480/- was imposed on respondent firm. It was held by learned first appellate authority that in a search case though department can launch proceeding u/s 73/74 of CGST/UPGST, Act but levying or collecting penalty and fine by invoking powers conferred 130(2)/122 are not sustainable.
In this second appeal department has challenge the findings of learned first appellate authority confine to amount of fine only.
We are unable to understand that while department has not challenged the findings of first appellate authority in respect of amount of penalty. How, to the extent of fine appeal can be entertained by this tribunal.
Thus, this second appeal filed by revenue is not mentionable and accordingly dismissed summarily by virtue of section 112 of CGST/UPGST, Act.
Order be communicated to all concerned, as per law.
