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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S.KULKARNI, AARTI SATHE
Amit Manilal Haria – Appellant
Versus
Joint Commissioner, CGST & Central Excise – Respondent
| Table of Content |
|---|
| 1. gst probe, arrests, scns, penalties on company officers. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 2. debate on section 122(1a) jurisdiction over employees. (Para 12 , 13 , 14 , 15 , 16 , 17) |
| 3. section 122(1a) applies only to taxable persons. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 4. shantanu precedent bars employee penalties under 122(1a). (Para 25 , 26 , 27 , 28) |
| 5. no retrospective penalty; distinguishes contrary cases. (Para 29 , 30 , 31) |
| 6. order quashed for lack of jurisdiction. (Para 32 , 33) |
JUDGMENT :
G. S. Kulkarni, J.
1. This petition under Article 226 of the Constitution of India challenges an order-in-original dated 1 February 2025 whereby the show cause notice dated 2 August 2024 issued to the petitioners by the Joint Commissioner (AE), CGST & C.Ex. Mumbai East, in the proceedings of one ‘M/s. Shemaroo Entertainment Limited’, has been confirmed not only against the said entity but also against the petitioners who are the Chief Financial Officer, Chief Executive Officer and Director and Joint Managing Director respectively, being the employees of the said entity, to the extent that the petitioners have been ordered with a penalty of Rs.1,33,60,60,
Section 122(1A) CGST Act imposes penalty only on taxable persons retaining benefits of specified transactions conducted at their instance; inapplicable to mere employees without such findings or taxa....
The court upheld the imposition of penalties under GST laws, affirming that vague allegations do not invalidate the jurisdiction of the authorities when substantial involvement in fraud is establishe....
The main legal point established in the judgment is that for an offence to be cognizable and non-bailable under the CGST Act, the input tax credit wrongly availed must exceed Rs.5 crores. Additionall....
Dual proceedings concerning the same subject matter initiated by State GST authorities after Central GST proceedings are barred under Section 6(2)(b) of the CGST Act.
The jurisdiction under the Central Goods and Services Tax Act prohibits State GST authorities from initiating parallel proceedings once Central GST proceedings have commenced on the same subject matt....
Penalties for GST violations must align with legislative mandates; courts may not intervene unless penalties are grossly disproportionate to offenses. Mandatory penalties apply irrespective of the pe....
Penalty for late GST payment without tax evasion should be nominal; failure to provide a fair hearing and consider relevant mitigating factors is a breach of due process.
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