Nandi Pvc Products PVT LTD vs. Union Of INDIA
Held
The Court held that the penalty imposed under Section 122(2)(a) of the CGST Act was not sustainable as the mandatory procedures under Sections 73 and 74, including the issuance of a show-cause notice and adjudication, were not followed. The Court noted that the assessment order was passed prematurely without adhering to the statutory notice period.
Facts
The petitioner challenged an assessment order imposing tax, interest, late fees, and a significant penalty. The petitioner argued that the assessment order was passed without following the prescribed procedure, specifically by not providing the statutory 15-day notice period and by imposing penalty under Section 122 without adhering to the procedures outlined in Sections 73 or 74.
Key Issues
The key issues were whether the penalty imposed under Section 122 was validly levied without following the procedural requirements of Sections 73 and 74, and whether the assessment order under Section 62 was passed in violation of the notice period stipulated in Section 46.
Sections Cited
Section 62, Section 122, Section 73, Section 74, Section 46, Section 107
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
HON’BLE SRI JUSTICE C.PRAVEEN KUMAR AND HON’BLE SRI JUSTICE A.V. RAVINDRA BABU W.P. No. 7138 of 2021 AND W.P. No. 7192 of 2021
COMMON ORDER: (Per Hon’ble Sri Justice C. Praveen Kumar)
As the issue involved in both the Writ Petitions being one and the same, they are heard together and disposed of by this Common Order. W.P. No. 7192 of 2021 is taken as a lead petition in deciding the issues involved.
The present Writ Petition came to be filed, under Article 226 of the Constitution of India, seeking the following relief: “to issue Writ, Order or Direction more particularly in the nature of Writ of Mandamus declaring the proceeding of the 3rd Respondent in Assessment Order OC No. 80/2019, dated 05.02.2019, in Form GSTR-ASMT-13 insofar as imposing penalty of Rs.1,37,31,305/- is illegal, arbitrary and contrary to the provisions of the Central Goods and Services Tax Act, 2017, and the Andhra Pradesh State Goods and Services Tax Act, 2017, and violative of Article 14 and 265 of the Constitution of India and set-aside the same and to pass such order ....”
The Petitioner is manufacturer of Lateral Pipes & Drippers registered under the Central Goo
The judgment continues below.
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