Case Law Details
Khandelwal Khad Beej Bhandar Vs State of U.P. and another (Allahabad High Court)
Assessee filed its return, pursuant to the notice issued under Section 125 read with Section 127 of CGST Act, the imposition of penalty is not justified
In the case of Khandelwal Khad Beej Bhandar Vs State of U.P. and Another, the Allahabad High Court addressed a dispute concerning the imposition of a penalty under the CGST Act, 2017. The petitioner argued that after filing the required returns in response to a notice issued under Section 46 of the CGST Act, the subsequent penalty imposed under Section 125, read with Section 127 of the Act, was unwarranted. The petitioner contended that compliance with the notice rendered the penalty order unjustified.
The court granted the State time to file a counter affidavit and scheduled the matter for further hearing in February 2025. Meanwhile, it issued an interim order staying the recovery proceedings initiated under the penalty order dated September 9, 2024, until the next hearing. This case highlights the procedural nuances and complexities in applying penalties under the CGST Act, as well as the importance of judicial scrutiny in ensuring fair enforcement of tax laws.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. It is inter-alia submitted by counsel for the petitioner that once pursuant to the notice under Section 46 of the CGST Act, 2017 (‘the Act’), the petitioner had filed its return, pursuant to the notice issued under Section 125 read with Section 127 of the Act, the imposition of penalty by the respondents is not justified.
2. Learned Standing Counsel prays for time to file a counter affidavit, which may be filed by the next date.
3. List the petition on 02.2025, as fresh.
4. In the meanwhile and till the next date, recovery pursuant to the order dated 9.9.2024, Annexure-5, shall remain stayed.
Order Date :- 10.1.2025
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