Balu Jayaraman Vs Assistant Commissioner (ST) (Madras High Court)
In the case of Balu Jayaraman vs Assistant Commissioner (ST) at the Madras High Court, a significant ruling was delivered regarding the imposition of a penalty following the discharge of full GST and interest liabilities. The judgment, dated 12.09.2023, faced challenge primarily on the grounds of the imposed 100% penalty.
The petitioner, Balu Jayaraman, was embroiled in proceedings related to alleged wrongful availment of Input Tax Credit. These proceedings culminated in the impugned order dated 12.09.2023, which imposed a substantial penalty.
Balu Jayaraman’s counsel argued that although a statutory appeal was not filed earlier, the petitioner chose to discharge the tax and interest liabilities first. Receipts of payments made were presented, demonstrating the complete discharge of tax and interest liabilities as per the impugned order. Consequently, the petitioner sought an opportunity to contest the penalty liability through a statutory appeal.
The learned Additional Government Pleader, Mr. T.N.C. Kaushik, representing the respondent, acknowledged receipt of the petition but raised concerns over the petition’s filing after the expiration of the limitation period.
Upon examination of the receipts provided, it was evident that the petitioner had made payments between February 14, 2024, and March 18, 2024. The writ petition itself was filed in late March 2024, subsequent to the discharge of the entire tax and interest liabilities.
