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2023 (12) TMI 555 - HC - GSTLevy of penalty under Section 125 of the GST Act - petitioner was asked to furnish the returns within 15 days, which was duly complied with, inspite of which penalty is imposed - non-application of mind - HELD THAT - Admittedly since the petitioner had complied with the terms of the show cause notice by furnishing the returns, there was no lawful justification to impose the penalty. The impugned orders dated 10.02.2023 and the order dated 14.03.2023 are contrary to law and passed on non application of mind and are set aside - Petition allowed.
Issues involved:
The issues involved in the judgment are imposition of penalty under Section 125 of the GST Act despite compliance with show cause notice and submission of returns within the stipulated time frame. Summary: The petitioner received a notice under Section 46 of the GST Act, directing them to furnish returns within 15 days, with the assurance that proceedings would be withdrawn upon compliance. The petitioner submitted the returns on 07.02.2023, meeting the requirements of the notice. However, the authorities proceeded to impose a penalty under Section 125 of the GST Act through an order dated 10.02.2023, despite the petitioner's timely response. The respondent's counsel did not contest these facts. The impugned order noted that the petitioner had indeed replied on 07.02.2023. Nevertheless, the assessing authority, in the same order dated 10.02.2023, erroneously concluded that no reply had been received, indicating a lack of proper consideration of the available facts. Given that the petitioner had adhered to the show cause notice by submitting the required returns, there was no valid basis for the imposition of a penalty. Consequently, the impugned orders dated 10.02.2023 and 14.03.2023 were deemed legally flawed and passed without due consideration. In light of the above, the High Court ruled in favor of the petitioner, setting aside the impugned orders dated 10.02.2023 and 14.03.2023. The writ petition (tax) was allowed, providing relief to the petitioner.
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