Can the GST Department impose penalties under both section 74 and section 122 for the same offence? Is it permissible to levy a double penalty for a single offence?
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
1. Penalty under Section 76 of Finance Act, 1994 dropped in impugned order while sustaining penalty under Section 78 ibid. Reasoning in impugned order that double penalty not imposable when person found guilty of suppression with intent to evade.
Tribunal Bombay in COMMR. OF SERVICE TAX, MUMBAI vs TIGER DETECTIVE & SECURITY SERVICE
(2010) 20 STR 639
2. In view of fourth proviso added to Section 78 of Financial Act, 1994 w.e.f. from 10-5-2008, penalty if imposed under Section 78 ibid same could not have been imposed under Section 76 ibid.
Tribunal Allahabad in Patanjali Yogpeeth Trust vs Commissioner of Central Excise, Meerut-I
(2024) 17 CENTAX 318
This case is affirmed by Supreme Court [(2024) 388 ELT 675]
3. Penalty imposed under both Sections 76 and 78 of Finance Act, 1994 - Tribunal consistently holding that double penalty not imposable - Penalty under Section 78 ibid set aside.
Tribunal Kolkatta in REMAC MARKETING (P) LTD. vs COMMISSIONER OF SERVICE TAX, KOLKATA
(2009) 13 STR 658
4. Penalty imposed second time in respect of same transaction and on the basis of same facts unjustified - Rule 209A of erstwhile Central Excise Rules, 1944.
Tribunal Delhi in GUIDE VALVE INDUSTRIES vs COMMISSIONER OF C. EX., CHANDIGARH-II
(2003) 156 ELT 1020
5. Double penalty under Section 76 not imposable in cases where penalty imposed under Section 78 ibid for suppression - Sections 76 and 78 ibid mutually exclusive.
Trinunal Delhi in THE FINANCERS vs COMMISSIONER OF CENTRAL EXCISE, JAIPUR
(2007) 8 STR 7
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