2026-VIL-617-GUJ
  1. Home
  2. 2026-VIL-617-GUJ

SGST High Court Cases

GST – Levy of Penalty on Partners under Sections 122(1A) of the CGST Act, 2017 - Liability of partners for penalty in fraudulent Input Tax Credit - Partnership firm engaged in generating fake invoices and e-way bills without actual supply of goods. During investigation, both partners admitted their involvement and made incriminating statements - The adjudicating authority imposed penalties under Sections 122(1A) and 122(3) against the partnership firm and its partners - Whether Partners of a partnership firm can be held liable for penalty under Section 122(1A) of the CGST Act, 2017 when a penalty has already been imposed on the partnership firm – HELD – The Partners can be held individually liable for penalty under Section 122(1A) of the CGST Act, 2017 when they retain the benefit of fraudulent transactions and at whose instance such transactions are conducted. The adjudicating authority has recorded categorical findings establishing the full knowledge, consent and complicity of both Partners in conducting the affairs of the partnership firm, including their admission of involvement in generating fake invoices, admitting incorrect e-way bills were generated, and their active participation in hawala transactions - The WhatsApp chats, forensic examination of mobile phones, statements of the petitioners themselves, and documentary evidence established prior knowledge and habitual conduct of both partners. The impugned order is a detailed, reasoned order containing extensive findings based on investigation materials and does not violate principles of natural justice. The judgment of Supreme Court relied upon by petitioners pertains to passing of reasoned orders by quasi-judicial authorities and does not remotely apply where detailed findings have been recorded. The judgment of Bombay High Court cited by petitioners dealt with a different factual matrix without a widespread network of fraudulent transactions - The petitioners had an efficacious statutory remedy of appeal and all factual findings including the applicability of the provisions of Section 122(1A) of the CGST Act could have been examined by the appellate authority. However, since the petitioners have insisted for reasoned order, the Court is constrained to pass one. The writ petition is rejected
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Filing Near: Closing Resolutions...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?