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On a bare reading Section 122 and 125, it is obvious that unlike Section 123 and 129, there is no mention of proper officer to levy penalty and these sections only mention penalty amount for the offences.
The Hon’ble Delhi High Court in Parag Garg held that no coercive action shall be taken, where penalty under Section 122(1A) of the CGST Act, 2017 was imposed for transactions conducted prior to the enforcement of the said provision.
The Hon’ble Delhi High Court in the case of Bhupender Kumar declined to entertain the writ petition challenging penalty under Section 122(1A), holding that the petitioner failed to rebut allegations and has an alternative remedy under Section 107 of the CGST Act.
The Delhi High Court, in Bhupender Kumar case imposed a penalty amounting to approximately Rs. 285 crore under Section 122(1A) of the CGST Act, 2017, along with additional penalties under Sections 122(3)(a), (d), (e) and Section 125 of the CGST Act.
Whether Penalty can be levied on the employee of the Company u/s 122(1A) of CGST Act who is not directly involved in day-to-day affairs of the company and has not retained any benefit of the transaction?
The Hon’ble Bombay High Court in the case of Shantanu Sanjay Hundekari allowed the writ petition and set aside the demand of penalty amount of Rs. 3731 Crore , thereby holding that, The penalty is imposable only on person under sub-section 1A of Section 122 of the CGST Act