GST on amount of penalty  ––- The Appellant challenged the order dated 05.01.2021 passed by the learned Judge, whereby he allowed the writ petition filed by the respondents as against the order imposing penalty for the alleged shortage of stocks amounting to Rs.7,95,770/-. The counsel for the appellants submitted that the order dated 18.12.2020, based on which, the learned Judge passed the order impugned, was subsequently challenged by the appellants and this court, by order dated 24.03.2021, granted an order of interim stay in respect of the findings of the learned Judge on the calculation of GST on the penalty, alone; and the omitted section 7(1)(d) was brought into the same amendment as section 7(1)(A) and the same was not taken into consideration by the learned Judge. The court observed that the learned Judge rendered her finding that “post 01.07.2017, there can be no levy of GST on the amount of penalty”, on 05.01.2021, whereas, the appellants obtained the order of interim stay with respect of GST on penalty, only on 24.03.2021 i.e., much later than the order of the learned Judge. Therefore, the said interim order subsequently obtained, cannot be applicable to the facts of the present case and the order of the learned Judge holds good as on 05.01.2021, which warrants no interference.

Held that:- The Hon’ble High Court directed that there is no bar for the appellants in proceeding with the enquiry as against the respondents, after issuing show cause notices afresh and providing opportunity of hearing.