Case Law Details
Clear Secured Services Private Limited Vs Commissioner, State Tax GST, U.P. Commercial Tax, Lucknow And Another (Allahabad High Court)
Introduction: The Allahabad High Court recently delivered a significant judgment in the case of Clear Secured Services Private Limited vs Commissioner, State Tax GST, U.P. Commercial Tax, Lucknow. The court’s decision resulted in a substantial reduction of the GST penalty imposed on the petitioner, Clear Secured Services Pvt Ltd. The penalty was reduced from Rs. 56,00,952 (CGST 28,00,476+ SGST 28,00,476) to a mere Rs. 10,000.
Common Issue and Order: The court addressed both petitions in a common order due to their shared issues. Legal counsels for the petitioner and the respondent department presented their arguments.
Background and Show-Cause Notice: Clear Secured Services Pvt Ltd, a private limited company providing manpower supply services, received a show-cause notice in May 2021. Allegations were made that though the petitioner collected GST, it was not paid within the prescribed time, leading to a penalty of Rs. 56,00,952.
Ex-Parte Order and Appeal: Owing to the challenging circumstances posed by the Covid-19 pandemic, the petitioner couldn’t respond promptly, resulting in an ex-parte order imposing the hefty penalty. The petitioner appealed, arguing that the delay was due to external factors, and the amounts were paid with late fees. However, the appellate authority upheld the penalty.
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