Tvl. Punitha Antony Store v. State Tax Officer
In favour of the assessee; matter remanded
The ruling in brief
Tvl. Punitha Antony Store challenged a penalty order before the High Court of Madras (W.P.(MD) No. 14984 of 2026, decided 5 June 2026). Revenue imposed penalty equal to 100 percent of tax under Section 74 of the CGST Act for alleged fraud; the assessee contended that Section 74A permitted only 50 percent in the applicable scenario and that misquotation of the section was a curable defect. Under Sections 74, 74A, and 160, the court held the error materially altered the assessee's liability and was not a mere misdescription of provision. The impugned penalty order was quashed and fresh proceedings were directed under the correct provision. Outcome: assessee favoured with remand for de novo adjudication. This editorial summary is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST S.74A — Section 74A of the Central Goods and Services Tax Act, 2017.
- CGST S.160 — Assessment, re-assessment and other proceedings not invalid for certain defects.
Source documents
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