Raviprasad Ganesh Zantye Vs Union of India and Ors. (Bombay High Court)
Penalty under Section 122(1A) stayed as provision applies only to taxable person, not director: Bombay HC
The Bombay High Court considered a writ petition challenging an order dated 17 March 2026 imposing penalty on the petitioner under Section 122(1A) of the CGST Act, 2017. The petitioner contended that Section 122(1A) does not apply to an individual, including a present or former director of a company, and relied on the decisions in Shantanu Sanjay Hundekari vs. Union of India and Amit Manilal Haria & Ors. vs. The Joint Commissioner, CGST & Central Excise & Ors. It was also submitted that the petitioner had resigned as the director of the company before the impugned order was passed. The State sought time to obtain instructions. The Court issued notice to the respondents, made it returnable on 6 August 2026, recorded waiver of service by the State, directed issuance of notice to the remaining respondents, and, having regard to the facts and the cited decisions, ordered as an ad-interim measure that the operation of the impugned order dated 17 March 2026, insofar as it concerned the writ petitioner, would remain suspended until further orders.
