2024 (10) TMI 136 - HC - GST

Demand of penalty at the higher rate being 100 percent of the value of the goods under Section 129(1)(b) of the U.P. G.S.T. Act, 2017 - petitioner is opposed to quantum of penalty and not at the stage of detention of goods - HELD THAT - On query made, learned counsel for the revenue has made a fair statement, it cannot be doubted, the petitioner is the bonafide owner of the goods. The penalty order is modified to the extent penalty imposed. Quantum is reduced in terms of provisions of Section 129(1)(a) of the Act i.e. equal to twice the amount of tax imposed on the value of the goods, as estimated by the revenue authorities - Petition disposed off.

Summary

The High Court of Allahabad heard a petition challenging a penalty order under the CGST/IGST Act. The petitioner, claiming to be the owner of the goods, sought a writ to quash the penalty. The court found the penalty imposed by the revenue authority to be harsh and unreasonable, and reduced it to twice the amount of tax imposed on the value of the goods. The writ petition was disposed of accordingly.