This writ petition is allowed and the Assessment order is set aside and the matter is remitted back with a direction that a fresh assessment of tax and penalty shall be made.
Section 62 of the CGST Act — Assessment Orders -— The petitioner challenged Assessment order dated 05.02.2019 in Form GSTR-ASMT 13. The counsel for petitioner submitted that in the impugned order, penalty was imposed in terms of Section 122(2)(a) of the Act. In order to impose the penalty in terms of Section 122(2)(a), the demand and recovery shall be made by following the procedure contemplated under Section 73. But no such SCN was preceded to the impugned order. In terms of Section 122, the penalty that can be imposed is Rs.10,000/- or 10% of the tax due, whichever is higher. In this case the tax imposed was Rs.27,47,248/- and an equal amount of Rs.27,47,248/- was imposed as penalty, which is quite contrary to Section 122(2)(a) of the Act. The counsel for respondents has no objection for setting aside the impugned order and remanding the matter for fresh assessment.
Held that:- The Hon’ble High Court set aside the impugned order dated 05.02.2019 and remanded the matter to the respondent with a direction to pass Assessment Order afresh on merits.
This writ petition is allowed and the Assessment order is set aside and the matter is remitted back with a direction that a fresh assessment of tax and penalty shall be made.
Section 62 of the CGST Act — Assessment Orders -— The petitioner challenged Assessment order dated 05.02.2019 in Form GSTR-ASMT 13. The counsel for petitioner submitted that in the impugned order, penalty was imposed in terms of Section 122(2)(a) of the Act. In order to impose the penalty in terms of Section 122(2)(a), the demand and recovery shall be made by following the procedure contemplated under Section 73. But no such SCN was preceded to the impugned order. In terms of Section 122, the penalty that can be imposed is Rs.10,000/- or 10% of the tax due, whichever is higher. In this case the tax imposed was Rs.27,47,248/- and an equal amount of Rs.27,47,248/- was imposed as penalty, which is quite contrary to Section 122(2)(a) of the Act. The counsel for respondents has no objection for setting aside the impugned order and remanding the matter for fresh assessment.
Held that:- The Hon’ble High Court set aside the impugned order dated 05.02.2019 and remanded the matter to the respondent with a direction to pass Assessment Order afresh on merits.