2024 (10) TMI 964 - HC - GST

Levy of penalty u/s 122(2)(b) of the CGST Act - petitioner is a Local Authority and falls within the definition of Local Authority as provided in Clause (69) of Section 2 of CGST Act or not - HELD THAT - Taking into account the peculiar facts of the case, wherein, the petitioner has paid the entire tax along with interest, this Court is of the view that the petitioner may be granted one final opportunity to put forth its objections, which was not objected to by the learned Standing Counsel for the respondent. The impugned order dated 11.10.2023 is set aside. The impugned order shall be treated as a show cause notice and the petitioner shall file their objections with regard to the levy of penalty within a period of two (2) weeks from the date of receipt of a copy of this order. If any such objections are filed within the stipulated period, the respondent shall consider the same and pass appropriate orders in accordance with law after affording the petitioner a reasonable opportunity of hearing. The Writ Petition stands disposed of.

Summary

The High Court set aside the impugned order levying penalty under Section 122(2)(b) of the CGST Act, granting the petitioner one final opportunity to file objections within two weeks. Failure to do so will revive the impugned order of assessment.