&w=3840&q=100)
Allahabad HC rejects Patanjali Ayurved's plea against ₹273.5 cr penalty
The Allahabad High Court has dismissed Patanjali Ayurved Limited's petition challenging ₹273.50-crore goods and service tax (GST) penalty.
A division bench comprising Justices Shekhar B Saraf and Justice Vipin Chandra Dixit rejected Patanjali's argument that such penalties constitute criminal liability and can be imposed only after a criminal trial.
The bench was of the view that tax authorities can impose penalties under Section 122 of the GST Act through civil proceedings without requiring criminal court trials.
The court clarified that GST penalty proceedings are civil in nature and can be adjudicated by proper officers.
"After detailed analysis, it is clear that the proceeding under Section 122 of the CGST Act is to be adjudicated by the adjudicating officer and is not required to undergo prosecution," the bench said.
Patanjali Ayurved operates three manufacturing units at Haridwar (Uttarakhand), Sonipat (Haryana) and Ahmednagar (Maharashtra). The company came under investigation following information received by authorities about suspicious transactions involving firms with high Input Tax Credit (ITC) utilisation but no income tax credentials.
The investigation led to allegations that Patanjali "acting as a main person indulged in circular trading of tax invoices only on paper without actual supply of goods".
The Directorate General of GST Intelligence (DGGI), Ghaziabad issued a show cause notice on April 19, 2024 to Patanjali Ayurved, proposing a penalty of ₹273.51 crore under Section 122(1), clauses (ii) and (vii) of the Central Goods and Service Tax Act 2017.
Later, the DGGI dropped tax demands under Section 74 through an adjudication order dated January 10, 2025.
The department found that "for all the commodities, the quantities sold were always more than the quantities purchased from the suppliers, thereby making the observation that all the ITC which was availed in the impugned goods was further passed on by the petitioner".
Despite dropping the tax demand, authorities decided to continue with penalty proceedings under Section 122, prompting Patanjali to challenge this before the high court.
After hearing both sides, the court in its judgment dated May 29 dismissed the petition.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
37 minutes ago
- Mint
GST Council may eliminate 12% tax slab, to shift items to 5% and 18% rates: Report
The GST Council may soon consider a plan to rationalise the goods and services tax rates, reducing them from four to three by eliminating the 12 per cent tax slab, according to a report by the Hindustan Times, citing people aware of the development. The officials and experts advising the Group of Ministers (GoM) over rate rationalisation have reached a 'near consensus' that the current 12 per cent tax slab does not hold much relevance now and the items falling under this could be shifted to either 5 per cent or 18 per cent slab. 'This could be the most plausible way to undertake a revenue neutral tax rate rationalisation exercise. However, the GST Council has to take a final call,' the report quoted a person aware of the development. The proposal to remove 12 per cent tax slab has been supported by most Union and state government officials, experts and GoM representatives, it said. Presently, there are four tax slabs under the GST regime in India – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Under the 12 per cent tax slabs goods such as such as condensed milk, caviar and caviar substitutes prepared from fish eggs, drinking water packed in 20 litre bottles, walkie talkies, tanks and other armoured fighting vehicles, contact lenses, cheese, dates and dried fruits, frozen vegetables, sausages and similar meat products, pasta, jams and jellies, fruit juice-based drinks, namkeens including bhujiya, curry paste, mayonnaise, tooth powder, feeding bottles, carpets, umbrellas, caps, bicycles, specific household utensils, furniture made of cane or wood, pencils and crayons, handbags and shopping bags made of jute or cotton, footwear priced lower than ₹ 1,000, diagnostic kits, and marble and granite blocks are currently included. Meanwhile services such as specified construction work, hotel rooms up to ₹ 7,500 per day, transport of passengers by air in non- economy classes, some types of multimodal transportation, and certain professional, technical and business services are included in the 12 per cent tax slab. The GST Council is expected to meet either in June or July. The apex decision-making body under the indirect tax regime comprises the Union Finance Minister and Finance Ministers (or senior ministers) of states. The Council last met in December 2024 and is expected to discuss proposals related to rate rationalisation and other issues, including the ease of compliance, the report said. The GoM on rate rationalisation was formed on September 24, 2021, after the decision of the 45th GST Council meeting in Lucknow. Its first convenor was convener was former Karnataka CM Basavaraj S Bommai. In November 2023, it was convened by UP Finance Minister Suresh Kumar Khanna. Subsequently, on February 27, 2024, Samrat Chaudhary, the deputy CM of Bihar, took on the role of convener.
Time of India
2 hours ago
- Time of India
There's no such thing as EMs any more; Morgan Stanley picks strongest stories including India: Jonathan Garner
Jonathan Garner , MD, Morgan Stanley , anticipates a weakening US dollar , benefiting countries like India with monetary policy autonomy. India's superior earnings growth , compounding at 12% per annum, has driven its outperformance in emerging markets since the COVID-19 pandemic. As India's weight in global equity indices exceeds 2%, global fund managers are compelled to allocate towards the country. Garner further says that the traditional concept of 'emerging markets' is outdated due to the intense rivalry between China and the US, the world's largest economies. The diverse range of countries in terms of economic indicators and policy approaches makes a single 'emerging market' label inaccurate. India stands out as the strongest among these nations. What is the chatter about India and all the uncertainties in the world like at the conference? Jonathan Garner: I was last here in January and at that point there was a debate both here in India and globally about the cyclical slowdown that has been going on in India in the second half of last calendar year. But coming back here for this event, it is very obvious that the economy has picked back up again. We just printed 7.4% in the most recent quarter for GDP and many other micro indicators suggest the economy is picking up. For example, GST revenue being up mid-teens year on year. So, we know that there was easing of monetary and fiscal policy, and it looks like the Indian economy is kind of moving ahead very strongly and it is likely to be by far the strongest GDP growth of the major economies in the world this year. What about the entire construct for emerging markets? The dollar is weak. Bond yields globally are at 4.5%. Is there enough and more technical and macro factors at play which will drive flows into emerging markets, what is your view there? Jonathan Garner: I would emphasise that India is quite different from other emerging markets. For example, we do expect China growth to decelerate this year and the US and China engaged in an unprecedented conflict over trade. We also think that, for example, markets like Korea and Taiwan will have a semiconductor cycle to contend with. But there is a group. India is not unique. There are other parts of Latin America and EMEA and Southeast Asia where this dollar weakening that you mentioned is unlocking a quite different cycle from what we have seen in the past. As portfolio capital is moving away to some extent from the US, we at Morgan Stanley expect the US dollar to be weakening throughout this year. We think on the DXY measure, it will end up below 90 and that produces good things. It gives monetary policy autonomy for example to a country like India. So, the RBI is able to cut interest rates even whilst the Federal Reserve is actually on hold, so that is a key positive feature. The valuations in India for the longest time are expensive and they are above the mean. But given the growth construct which you just outlined and what Morgan Stanley has been outlining, how long do you think investors or global investors will disregard this? Jonathan Garner: India has been outperforming other emerging markets quite dramatically for four or five years now really since the height of the COVID pandemic and that is to do with superior earnings growth. It has been able to compound earnings per share MSEI India around 12% per annum, way above other emerging markets. You are not going to buy that economic and earnings performance so cheaply. If you look at dedicated EM funds, even though India's outperformance and the issuance that we have had in primary and secondary mean that its share in the EM index is going up, EM dedicated active fund managers are slightly underweight the market. But I do think there is a bigger story here which is that as India's weight in the global equity indices, the country world indices is now exceeding 2%, truly global fund managers and people who allocate passively on a global basis now have to make an allocation towards India. Live Events You Might Also Like: How is India benefiting from supply chain diversification away from China? Morgan Stanley's Chetan Ahya explains That is a completely different feature of the market from what we have seen historically where, as your previous question suggested, you are only really talking about India within the context of emerging market fund flows. It is now for the first time really a global equity destination. Do you think at a time when there are not just EM funds but global allocations are also upping for India, are valuations for the overall market a concern or any other domestic factors? Jonathan Garner: From time to time, we have moderated our overweight when we thought that valuations were rich. At the moment, we do not have that view. We are around about 22 times forward PE for MCEI India, roughly the same multiple as the S&P 500, that may seem rich, but actually India's earnings growth is right up there with the best in the world. The key point we make about the Indian financial system at the moment is that bond yields are not volatile. 10-year yields are very well behaved and trending downwards in India and equity market volatility is now well below the average in global equities. The systematic investment plans, the SIPs and other domestic flows drive that. It is just a very strong story and you are not going to buy a strong story like this on low valuations. The market would not be that kind to you to offer this on a low valuation. What is the risk for emerging markets as we move from the first half to the second half of the year? Is it tariff, is it valuations? Jonathan Garner: There really is no such thing as emerging markets anymore. We have written about this really all the way back to our 2018 blue paper on multipolar world dynamics. We are just in a very different situation. We have the world's first and second largest economies, China and the US in a period of intense hegemonic rivalry. We have a whole slew of countries in terms of GDP per capita ranges, macro balance and policy style settings. You Might Also Like: India's structural strength makes it a long-term winner despite global challenges: Ridham Desai The old concept of some group of countries that were heading in the same direction and you could put the name on them as being emerging markets, just does not work. If you were to think about emerging markets, then the strongest of them by far is India for the reasons we have already gone through in this interview. We have tended not to recommend allocating to emerging markets. It is rather to pick the strongest stories which obviously include India. When it comes to India, the obvious choice and go-to space has always been the large financials. Other than that, because now the markets are also getting deeper, there is more money waiting on the sidelines, where else do you find opportunities within India? Jonathan Garner: Branded consumer products and industrials are very important and the modern urban lifestyle develops very rapidly here and a very vibrant consumer scene exists and a lot of those new transactions that you see, unfortunately I cannot talk about individual names, but they are taking place in this consumer area which is of significant interest to us. So, we are overweight, essentially financials, industrials, and consumer discretionary. Just to go back to this piece of allocation. When you look at India positioning versus other markets and when you look at the total flows which have been allocated to individual countries, would you say India positioning is still lower than the global MSCI benchmark or are we right up there? What we are trying to perhaps understand and gauge from you is that is there a lot of space left in the tank for it to get filled up further? Jonathan Garner: India is our largest recommended overweight. It has been outperforming. Its share in the MSCI EM benchmark is continually rising as also in the global equity benchmark. Within active dedicated EM funds, investors are around 150 basis points underweight, but they are not in the driving seat of price formation anymore. The market has changed completely. The SIPs, domestic flows and now the arrival of the passive global flows and some active global flows have changed the market structure and dynamics. I really do not think it is that significant where active dedicated EM managers are positioned. It is not of any great relevance.
News18
4 hours ago
- News18
Beating Plastic Pollution: How Purpose-Driven Brands Are Powering India's Sustainability Movement
Last Updated: As World Environment Day 2025 spotlights the urgent need to Beat Plastic Pollution, brands across India are turning intent into impact through purpose-led innovation As the world marks World Environment Day 2025 under the theme 'Beat Plastic Pollution', Indian industry is stepping forward with transformative actions that reflect not just environmental intent but a long-term commitment to circularity and innovation. From replacing conventional plastic packaging to building closed-loop systems and driving consumer awareness, purpose-led brands are demonstrating how environmental stewardship can become a business advantage. Among the frontrunners is ITC, a company that has made sustainability a strategic priority. Through its Paperboards & Specialty Papers Division and Packaging & Printing Business, ITC is investing in scalable, science-led alternatives to plastic. Innovations like Bioseal, a compostable coating; Oxyblock, a recyclable barrier; and Germ-Free Coating are not only reducing dependence on conventional plastics but are also ensuring regulatory and consumer alignment. At its state-of-the-art moulded fibre facility in Madhya Pradesh, ITC is producing plastic-free packaging using renewable fibres, reinforcing its commitment to industrial-scale impact. In FY24, more than 90% of ITC's raw materials were sourced from renewable resources. The company's Kovai unit reused 89,000 tonnes of wastepaper, while ITC managed over 70,000 tonnes of plastic waste — clear evidence that sustainability is deeply embedded in its operations. This commitment extends beyond its sustainable packaging business. ITC Hotels have eliminated single-use plastic while adopting energy-efficient systems and responsible waste management practices. Meanwhile, packaging-led consumer engagement campaigns are encouraging conscious consumption and recycling, reinforcing ITC's vision of a circular economy that benefits both people and the planet. 'At ASUS, innovation is not just about performance — it's about purpose. As a brand that values environmental stewardship, we've been working to foster a circular e-waste economy. Initiatives like our #DiscardResponsibly campaign encourage responsible e-waste disposal, while ASUS Select Stores now enable access to high-quality refurbished PCs. We've made meaningful progress integrating over 1,500 tons of PCR plastics into our products and recycling more than 40,000 tons of e-waste globally. But we know there's more to be done. With continued support from our community, we're committed to building a more responsible tech ecosystem, one that not only powers innovation but also protects our planet for future generations," said Eric Ou, Country Head, ASUS India. For Suntory Global Spirits, sustainability is deeply intertwined with its corporate philosophy. 'We believe that sustainability and profitability go hand in hand. With our 'Growing for Good' vision, we strive to integrate responsible practices into every part of our business, recognising that the natural resources we depend on — from water to raw materials — come from the planet we all share. Through our global Proof Positive program, we are making long-term commitments to reduce greenhouse gas emissions, replenish vital watersheds, restore green cover, and promote inclusivity. Globally, as part of our sustainability efforts, Laphroaig introduced new packaging in 2023, moving from the iconic bottle-tube to a recyclable carton, helping reduce carbon emissions by up to 30%. Closer to home, we have adopted a zero-plastic policy across all our offices in India, reinforcing our focus on everyday accountability and environmental consciousness. Through innovation, sustainability, and a commitment to positive impact, we strive to leave the world better than we found it and ensure a lasting legacy for society and future generations," said a company spokesperson, Suntory Global Spirits India. As brands, policymakers, and consumers converge on the shared goal of a cleaner, more resilient planet, the message of this World Environment Day is clear: the path to beating plastic pollution lies in collective action, responsible innovation, and long-term vision. Together, we can turn sustainability from a corporate ambition into a cultural norm. First Published: June 05, 2025, 06:16 IST
