Top Stories Penalty Imposed after Full GST and Interest Liability Discharged: Madras HC allows to file Statutory Appeal to Contest Penalty Order [Read Order] The court, recognizing the settlement of the entire tax and interest liability and the petitioner’s intention to address liability, deemed it fair to allow the petitioner to file a statutory appeal focused solely on the penalty By Navasree A.M – On April 24, 2024 4:33 pm – 2 mins read In a recent ruling, the Madras High Court granted the opportunity to file the statutory appeal to contest the penalty imposed after discharging full Goods and Services Tax ( GST ) and interest liability.

Allegations of wrongful Input Tax Credit ( ITC ) availment prompted proceedings against the petitioner, ultimately leading to the issuance of the impugned order dated 12.09.2023. The Counsel representing the petitioner argued that a statutory appeal had not been filed earlier because the petitioner chose to discharge the tax and interest liability. By citing receipts indicating payments made by the petitioner, it was asserted that the entire tax and interest liability, as stated in the impugned order, had been settled.

The petitioner sought an opportunity to contest the liability for penalty through a statutory appeal. Mr. T.N.C. Kaushik, Additional Government Pleader, accepted notice for the respondent and contended that the writ petition had been filed after the expiration of the limitation period. Upon examination of the receipts, the bench observed that the petitioner made payments between 14.02.2024 and 18.03.2024.

Notably, this writ petition was filed in late March 2024 after discharging the entire tax and interest liability. Considering that the entire tax and interest liability had been settled and that no appeal had been filed earlier due to the petitioner’s intention to discharge liability to that extent, the court deemed it just and appropriate to permit the petitioner to file a statutory appeal solely concerning the penalty.

Consequently, a Single bench of Justice Senthilkumar Ramamoorthy disposed of by allowing the petitioner to file a statutory appeal specifically addressing the penalty imposed under the impugned order dated 12.09.2023 within two weeks from the receipt of a copy of the court order. If such a statutory appeal is filed within the specified period, the appellate authority was directed to receive and consider it on its merits without considering the question of limitation.