"𝐆𝐄𝐍𝐄𝐑𝐀𝐋 𝐏𝐄𝐍𝐀𝐋𝐓𝐘: 𝐒𝐄𝐂𝐓𝐈𝐎𝐍 𝟏𝟐𝟓" by Beri R & Associates

GST Department levies general penalty U/s 125 in many cases.

What is the view of High Courts in such cases?
Can Penalty be levied in all cases or is there any solution for the same?

1. Rathore Building Material - Allahabad High Court
(2023) 13 CENTAX 185
Where petitioner complied with terms of show cause notice by furnishing returns in time provided, there was no lawful justification to impose penalty under section 125

returning finding that reply to show cause notice was not tendered, thus, order imposing penalty was to be set aside.

2. Sonjoli Construction Co. - Rajasthan High Court
(2023) 2 CENTAX 314
Enquiry notice under section 125(1)(i) of CGST Act, 2017 issued after cut-off date i.e. 30-6-2019 would not act as bar to filing of declaration under 'voluntary disclosure' category'

3. Satyendra Singh Kushwah - Jharkhand High Court
(2023) 10 TMI 414
Where summons issued by revenue authority has been properly replied to and GST had already been paid, proceedings U/s 125 or 132, which dealt with penalties and punishment, cannot be initiated against them.

4. Atlantic Care Chemicals Pvt. Ltd. - Kerala High Court
(2023) 10 TMI 145
Penalty U/s 125 not imposable for mere classification dispute.

5. Tirthamoyee Aluminium Products - Tripura High Court
(2021) 50 GSTL 496
Wrong mentioning of distance from place of transportation upto place of ultimate delivery as 470 kms.