Allahabad HC Seeks Clarity on GST Penalty Powers under rule 86B & Section 129

Hundal Traders Vs State of U.P. and another (Allahabad High Court) Allahabad High Court is currently hearing a petition filed by Hundal Traders challenging an order passed by the State Tax Officer (STO) (Mobile Squad)-3, Saharanpur. The STO initiated proceedings under Section 20 of the Integrated Goods and Services Tax Act, 2017 (IGST Act), and Section 129 of the Central Goods and Services Tax Act, 2017 (CGST Act), ultimately imposing a penalty of ₹92,452/- under Section 129(1)(a) of the CGST Act. Counsel for the petitioner raised two significant legal questions before the court. The first p...