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GST – Validity of imposition of penalty exceeding tax demand – Penalty under Sections 74 and 122(1)(vii) of the KGST Act, 2017 - Petitioner contended that the penalty imposed was illegal and arbitrary as it exceeded the tax demand and was contrary to the provisions of Sections 74 and 75 of the CGST/KGST Act, 2017 – HELD - While the tax and interest as demanded in the SCN has been reduced in the impugned order, the penalty as demanded in the SCN has been increased in the impugned order - Under Section 74(1), the penalty cannot be more than the tax demand, the penalty has to be a maximum equivalent to the tax specified in the notice. Further, under Section 74(9), the proper officer has to consider the representation made by the person and determine the tax, interest, and penalty due from such person. Additionally, Section 75(7) prohibits the authorities from demanding any penalty from the petitioner in excess of the amount specified in the notice, and no demand shall be confirmed on grounds other than the grounds specified in the notice – Further, the Section 75(13) operates as a bar for the respondents to impose penalty for the same act or omission on the same person under any other provision of the Act where penalty is imposed under Sections 73 or 74 of the Act. The Respondents had not only demanded a higher penalty than what was specified in the SCN but had also invoked Section 122 of the Act, which is not permissible - the impugned orders are set aside only to the extent of the demand and confirmation of higher penalty – The petition is partly allowed by remand
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