Manoj Ramkishan Agrawal Vs Union of India (Gujarat High Court)
Partners Personally Liable Under Section 122(1A) for Fake Billing and Bogus ITC; Section 122(1A) Penalty Writ Rejected as Detailed Findings Recorded: Gujarat HC
The Gujarat High Court considered a writ petition challenging an Order-in-Original dated 30.01.2026 imposing penalties under Sections 122(1A) and 122(3) of the Central Goods and Services Tax Act, 2017. Before hearing the matter on merits, the Court had granted the petitioners an opportunity to state whether they intended to avail the statutory appellate remedy under Section 107 of the CGST Act, 2017. The petitioners expressly chose to invite a decision on merits instead of filing an appeal.
The petitioners contended that the writ petition was maintainable on two grounds. First, they argued that the adjudicating authority had not recorded findings establishing their liability under Section 122(1A). Secondly, they submitted that the Order-in-Original violated the principles of natural justice by failing to consider the defence raised in their reply dated 15.05.2025. They also argued that they were merely partners of the partnership firm and, since a penalty had already been imposed on the firm, no separate penalty could be imposed upon them under Section 122(1A). Reliance was placed on the Supreme Court decision in M/s. Kranti Associates Pvt. Ltd. and Anr. vs. Sh. Masood Ahmed Khan and Others and the Bombay High Court decision in Amit Manilal Haria and Ors. vs. Joint Commissioner, CGST and Central Excise and Another.
