| Question And Answer | |
|---|---|
| Subject: | Gst 129 penalty |
| Category: | GST |
| Querist: | Saroj nagayach |
| Answered by: | Law Intern |
| Tags: | section 129 GST |
| Date: | November 23, 2025 |
Please inform me supporting judgment
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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