Parag Garg Vs Commissioner, Adjudication, CGST Delhi West and Anr. (Delhi High Court)
A person cannot be penalised under a provision that was not in force at the time the alleged act was committed-Delhi High Court
Summary: Recently In case of PARAG GARG and other vs COMMISSIONER, ADJUDICATION, CGST DELHI WEST AND ANR, Delhi High court upheld the provision of Article 20(1) of the constitution and held that, a person cannot be penalised under a provision that was not in force at the time the alleged act was committed. Same time court also conclude that, for imposing the personal penalty u/s 122(1A), person need not to be registered taxable person under GST.
M/s Worlds Window Impex India Private Limited, confirmed a demand on the allegation that the Company had engaged in circular trading and had irregularly availed Input Tax Credit (ITC), through invoices allegedly issued without actual supply of goods. Besides confirming the demand and penalty against the Company, the AA also imposed separate personal penalties upon the three Petitioners under Section 122(1A) of the Act of 2017, along with a penalty of Rs.25,000/- each under Section 125 of the Act of 2017, on the ground that they had served as directors of the Company at different points in time. SCN was issued to petitioners and subsequent to which the Adjudicating Authority(AA) by way of a common OIO confirmed a demand on the allegation.
