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The recovery proceedings are initiated without any authority of law. The Garnishee Notice came to be passed without hearing, the Writ Petition is allowed setting aside the impugned Garnishee Notice

Section 122 of the CGST Act — Penalty—Principal of Natural Justice – The petitioner sought directions to declare the proceedings of the Respondent vide Order dated 29.01.2019 in Form GSTR-ASMT-13 for imposing penalty of Rs.4,27,19,192/-, as illegal, arbitrary and contrary to the provisions of the Act. The Petitioner submitted that he paid total GST liability of Rs.4,69,92,664/- for the period of February 2018 to December 2018 and imposing penalty of Rs.4,27,19,192/- under Section 122(1) is illegal. The 5th Respondent has no power to impose such penalty as per Section 62 of Act. The petitioner submitted that to impose penalty under Section 122, the procedure under Section 73 and 74 is required to be followed. The petitioner was directed to pay penalty without giving any opportunity or notice about imposing penalty. The respondent submitted that the Petitioner has failed to pay GST liabilities and also file periodical returns i.e. GSTR-3B for various months within the prescribed due dates. He has filed GSTR-1 for certain months, but failed to file GSTR-3B returns for the corresponding months. No revenue is actually transferred to the Government. The court observed that the order came to be passed without following the principles of natural justice. Held that:- The Hon’ble High Court allowed the writ and set aside the Order dated 29.01.2019, and consequential proceedings, dated 12.08.2020, and remanded the matter back to the authorities concerned to deal with the same afresh, in accordance with law, after giving an opportunity of hearing to the Petitioner.
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