Latest news with #GSTAct
Mint
11 hours ago
- Business
- Mint
Setback to Patanjali Ayurved, Allahabad High Court dismisses ₹273.5 crore GST penalty appeal — Details here
The Allahabad High Court rejected Patanjali Ayurved Limited's plea challenging the ₹ 273.50 crore goods and service tax (GST) penalty, PTI reported on Tuesday, 3 June 2025. The high court bench comprising Justice Shekhar B Saraf and Justice Vipin Chandra Dixit dismissed Patanjali's argument that such cases are made up of criminal liability and can be imposed only after a criminal trial. '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,' said the judicial bench, as per the report. The court observed that the tax authorities can impose penalties on firms under Section 122 of the GST Act through civil proceedings without requiring criminal court trials. Patanjali Ayurved's sister concern, Patanjali Foods, even though a separate entity, is listed in the Indian stock market. Shares of Patanjali Foods were trading 0.44 per cent lower at ₹ 1,690.20 during Tuesday's stock market session, compared to ₹ 1,697.65 in the previous market close. The Directorate General of GST Intelligence (DGGI), Ghaziabad, issued a show cause notice to Patanjali Ayurved on 19 April 2024 proposing a penalty of ₹ 273.51 crore under various sections of the GST Act, reported the news agency. Later, the DGGI dropped tax demands under Section 74 in an order dated 10 January 2025. The department reportedly found that the quantities sold for all commodities were more than those purchased from the suppliers. '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,' the DGGI said. Despite dropping the tax demand, the tax authorities decided to continue with the penalty proceedings under Section 122, prompting Patanjali to challenge the order in the high court. Patanjali Ayurved operates three manufacturing units at Haridwar, Sonipat, and Ahmednagar. The company reportedly was under investigation following information received by authorities about suspicious transactions with high input tax credit (ITC) utilisation. The investigation reportedly found that Patanjali was 'acting as a main person' involved in circular trading of tax invoices on paper without supplying actual goods. According to an earlier Mint report, Patanjali Foods Ltd. rejected reports that Patanjali Ayurved Limited received notice from the Ministry of Corporate Affairs on Sunday, 1 June 2025. It also said that Patanjali Ayurved is not being investigated by the authorities.
Mint
12 hours ago
- Business
- Mint
Setback to Patanjali Ayurved, Allahabad High Court dismisses ₹273.5 crore GST penalty appeal — Details here
The Allahabad High Court rejected Patanjali Ayurved Limited's plea challenging the ₹ 273.50 crore goods and service tax (GST) penalty, reported the news agency PTI on Tuesday, 3 June 2025. The high court bench comprising Justice Shekhar B Saraf and Justice Vipin Chandra Dixit dismissed Patanjali's appeal, citing that such cases are made up of criminal liability and can be imposed only after a criminal trial. '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,' said the judicial bench, cited the news agency. The tax authorities can impose penalties on firms under Section 122 of the GST Act through civil proceedings without requiring criminal court trials, according to the report, citing the judicial bench. Patanjali Ayurved's sister concern firm, Patanjali Foods, even though being a separate entity, is listed in the Indian stock market. Shares of Patanjali Foods were trading 0.44 per cent lower at ₹ 1,690.20 during Tuesday's stock market session, compared to ₹ 1,697.65 in the previous market close. The Directorate General of GST Intelligence (DGGI), Ghaziabad, issued a show cause notice to Patanjali Ayurved on 19 April 2024 proposing a penalty of ₹ 273.51 crore under sections of the GST Act, reported the news agency. Later, DGGI dropped tax demands under Section 74 in an order dated 10 January 2025. The department reportedly found that the quantities sold for all commodities were more than those purchased from the suppliers. '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,' cited the news agency. Despite dropping the tax demand, the tax authorities decided to continue with the penalty proceedings under Section 122, prompting Patanjali to challenge the order in the high court. Patanjali Ayurved operates three manufacturing units at Haridwar, Sonipat, and Ahmednagar. The company reportedly was under investigation following information received by authorities about suspicious transactions with high input tax credit (ITC) utilisation. The investigation reportedly found that Patanjali was 'acting as a main person' who was involved in circular trading of tax invoices on paper without supplying actual goods. According to an earlier Mint report, Patanjali Foods Ltd. rejected reports that Patanjali Ayurved Limited received notice from the Ministry of Corporate Affairs (MCA) on Sunday, 1 June 2025. They also said that Patanjali Ayurved is not being investigated by the Centre. 'We may clarify that Patanjali Ayurved Limited has not received any communication from Ministry of Corporate Affairs('MCA') for the proposed investigation by MCA as appearing in mainstream media,' said the company in an official filing.
NDTV
17 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
17 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.
New Indian Express
17 hours ago
- Business
- New Indian Express
Allahabad HC rejects Patanjali Ayurved's plea 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.
