The ruling in brief
Where partners of construction firm were found to benefit from GST evasion involving undisclosed cash without invoices on transfer of development rights, and retained the benefit with transactions at their instance, penalty under Section 122(1A) was properly imposed on them as persons responsible, since the provision targets natural persons behind violations irrespective of entity structure.
Where SCN invoking Section 122(1A) was issued after its enforcement, targeting partners responsible for benefits retained from violations originally punishable under Section 122(1) during prior periods, Section 122(1A) merely identified liable persons without creating new violations, its application was valid for past transactions so long as SCN was issued after Section 122(1A) came into force
Provisions considered
Section 122 of Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.