Allahabad High Court Said GST Penalties Can’t Be Given Just For Minor Technical Mistakes
The Allahabad High Court has announced penalty enforced under Section 129(3) of the GST Act as illegal. The court has clarified that if tax is not evaded intentionally, then a penalty cannot be imposed just for minor technical errors.
The order has been passed by the Chief Justice Arun Bhasali and Justice Kshitij Shailendra division bench, in response to a petition filed by M/s Auto Industries.
Assistant Commissioner (Mobile Squad-5) of Gautam Buddha Nagar filed the petition for not filing the e-way bill Part B. In response to the case, the firm went to court.
The petitioner’s lawyer, Pranjal Shukla, said the goods were being moved legally, and it was just a technical mistake. But the government lawyer called it a serious issue.
The court noted that there was no mention of tax evasion in the case and cancelled the penalty by referring to a previous Supreme Court decision.
