2025 (4) TMI 1233 - HC - GST

Levy of penalty imposed under section 125 of the GST Act - opportunity of hearing not provided - violation of principles of natural justice - HELD THAT - Considering the fact that no opportunity of hearing has been granted or is reflected in the said order the order dated 20.01.2023 is quashed. The matter is remanded to the authority concerned to pass a fresh order after giving an opportunity of hearing in accordance with law. Petition allowed.

Summary

The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., quashed the order dated 20.01.2023 imposing a penalty of Rs.50,000 under Section 125 of the GST Act. The petitioner contended that the penalty was imposed "without even giving an opportunity of hearing" and exceeded the maximum limit of Rs.25,000 prescribed under Section 125. The Court held that the order was "mechanical" and contrary to the statutory mandate. Accordingly, the matter was remanded for a fresh order to be passed "after giving an opportunity of hearing in accordance with law." The writ petition was allowed on these grounds.