Question And Answer
Subject: Gst 129 penalty
Category: 
Querist: Saroj nagayach
Answered by:
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Date: November 23, 2025
Query asked by Saroj nagayach

Please inform me supporting judgment

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Answer given by

Section 129 penalty has been quashed/ reduced in cases where authorities imposed harsh fines for procedural lapses without proving intent to evade tax.

In Sandip Kumar Singhal v. Deputy Commissioner WPA 321 of 2023, goods were seized from godown (not in transit). The Calcutta High Court vide judgement dated 10.03.2023 quashed penalty & held S. 129 applies only to transit violations. It was also held that no opportunity of hearing violates natural justice. It relied on Supreme Court in Union of India v. Magnum Steel where it was held that searches need reasonable belief. Goods not in transit do not attract Section 129 applicability.



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