GST UPDATE

???? Desk of CA. Praveen Sharma Series-556 ????

MADRAS HIGH COURT IN THE CASE OF  Good Leather Shoes Private Limited 

?The petitioner challenges the penalty imposed in the order dated 22.11.2022, arguing it was imposed without considering amounts already remitted before the show cause notice on 21.02.2022. The appeal was rejected on 23.05.2023 due to a limitation issue.

?The petitioner's counsel argued that since the liability was discharged before the notice, the 10% penalty under Section 73(9) of the GST Act was inappropriate. The respondent's counsel maintained that the petitioner's reply was considered and the statutory appeal was filed.

?The court observed that the petitioner had remitted significant amounts towards ineligible ITC before the notice, which should have influenced the penalty decision.

 ?Consequently, the court set aside the penalty portion of the order and remanded the matter to the respondent for reconsideration A fresh order on the penalty is to be issued within three months, with a reasonable opportunity for a personal hearing provided to the petitioner.

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CA. Praveen Sharma

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