Latest news with #DGGI
NDTV
4 hours ago
- Business
- NDTV
Court Rejects Patanjali Ayurved's Petition Against Rs 273.5 Crore GST Penalty
Prayagraj: The Allahabad High Court has dismissed Patanjali Ayurved Limited's petition challenging Rs 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 Rs 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.
Time of India
5 hours ago
- Business
- Time of India
Allahabad HC rejects Patanjali Ayurved's plea against Rs 273.5 crore GST penalty
The Allahabad High Court has dismissed Patanjali Ayurved Limited 's petition challenging Rs 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Car Novels Undo 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. Live Events 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 Rs 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.
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Business Standard
8 hours ago
- Business
- Business Standard
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.
Indian Express
3 days ago
- Business
- Indian Express
Trader held for availing ITC worth Rs 15.19 cr by submitting fake invoices
A textile trader has been arrested by the Directorate General of GST Intelligence (DGGI) in Surat for allegedly submitting fake invoices of Rs 100 crore to avail Input Tax Credit worth Rs 15.19 crore. According to DGGI sources, the accused, arrested on Friday has been identified as Yatin Dudhat, a resident of Varachha, who runs textile business by the name of Dudhat International in Surat. Dudhat allegedly received fake invoices from different firms without any supply of goods. The officials had earlier raided his office and business place in Surat and recovered several incriminating documents. Dudhat has violated the provision of sections of 132 of Central Goods and Services Tax, Act, 2017, an official said. Sources said that the name of Dudhat cropped during a probe following the arrest of Chetan Patoliya, proprietor of Kunj Fashion, Surat. On Saturday, Yatin Dudhat was produced before Chief Judicial Magistrate court of Judge R M Kalotara. He was sent to 14 days judicial custody at Surat Central jail by court. DGGI sources added, they had carried out a search operation at Kunj Fashion, on May 2. During investigation, the officials found Patoliya's involvement in availing the Input Tax Credit of around Rs 12 crores, with the help of fake invoices of sales and purchase of goods. Patoliya in his statements to DGGI had mentioned that he had passed on (sold) ITC to different firms – including Infinity Impex, Salton Impex, Manya Overseas and Shreeji exports, without supply of goods – in Surat. The DGGI is currently carrying out a probe in this case and are collecting the details of the firms that had received ITC from Kunj Fashion and Dudhat International.
Hindustan Times
3 days ago
- Business
- Hindustan Times
Punjab: Mastermind behind ₹30-crore GST scam arrested
The Chandigarh zonal unit of the Directorate General of GST Intelligence (DGGI) claimed to have busted a network reportedly involved in generating fraudulent Input Tax Credit (ITC) through the issuance of invoices without the actual supply of goods. The mastermind, identified as Manmohan Singh of Ludhiana, has been arrested, it said. GST officials said the fraud involved multiple business entities, including M/s JHA and JHA Enterprises (Delhi), M/s Goyal Trading Agency (Delhi), M/s MAA Vaishno Enterprises (Delhi), M/s SS Enterprises (Ludhiana), M/s PC Techno Solutions (Ludhiana) and M/s PMI Smelting Private Limited (Ludhiana). These firms were found issuing fake invoices for zinc products, the DGGI mentioned. Preliminary analysis indicates a widespread network of bogus firms with the quantum of fraudulent Input Tax Credit currently estimated at approximately ₹30.21 crore. This figure is expected to rise as the investigation progresses. Investigations revealed that Manmohan Singh was actively involved in establishing and operating this racket, creating the aforementioned firms to generate and avail ineligible ITC. Furthermore, it has been uncovered that Singh, in collusion with other individuals under the agency's scanner, allegedly facilitated banking transactions and arranged cash movements in exchange for commissions to enable these illicit activities. An official said that Manmohan has been remanded to judicial custody. 'Such fraudulent activities pose a severe threat to the integrity and efficacy of the indirect taxation framework, undermining the foundational principles of transparency, equity and voluntary compliance. The generation of fictitious invoices and wrongful ITC claims not only distort market equilibrium by placing bona fide taxpayers at a competitive disadvantage but also results in significant revenue loss to the exchequer,' he added.
