Page 19 - Chap21 Offences & Penalties

Answer :-
Legal Provision:-

Ü As per section 122(1) of CGST Act, if a taxable person makes a supply of goods without issue of any
invoice with regard to such supply, then such person shall be liable to pay a penalty which shall be
higher of the following:-
- ₹ 10,000 or

- an amount equivalent to the tax evaded.
Ü As per section 122(3), a penalty extending to ₹ 25,000 shall be levied on any person who aids or
abets the above offence.
Discussion & Conclusion:-

Ü In given case, since Mr. Raman, a taxable person, has supplied goods without invoice, he is punishable
with penalty u/s 122(1) which will be higher of following:-
(i) ₹ 10,000/- or
(ii) 100% of tax evaded.
Ü Since Mr. Pankaj helped in tax evasion by Mr. Raman, he is punishable with penalty u/s 122(3) which

may extend to ₹ 25,000.
Ü Further, as per section 132, imprisonment would be as follows:-
(i) In case of first-time offence, if:-

(a) tax evaded > ₹ 5 crore, imprisonment upto 5 years and fine,
(b) tax evaded exceeds ₹ 2 crore but ₹ 5 crore, imprisonment upto 3 years and fine,
(c) tax evaded exceeds ₹ 1 crore but ₹ 2 crore, imprisonment upto 1 years and fine.
(ii) In case of subsequent offence:-
Imprisonment would be (without limit of amount of tax involved) up to 5 years and fine.

CCP 21.09.24.00

Answer the following questions independently:-
1. Whether the prosecution or other punishments can be initiated along with confiscation or
penalty?
2. Is the statement made and signed by a person on appearance in response to any summons
issued under section 70 relevant under the GST law? If yes, then under which circumstances?

Answer:-
1. Yes, as per section 131 of CGST Act, confiscation made or penalty imposed under the provisions of
GST Acts or the rules made thereunder shall not prevent the infliction of any other punishment to
which the person affected thereby is liable under the provisions of GST Acts or under any other law.

2. Yes, as per section 136 of CGST Act, a statement made and signed by a person on appearance in
response to any summons issued during any inquiry or proceedings shall be relevant for proving
the truth of the facts it contains, in any prosecution for an offence under GST Acts, under the
following circumstances:-

a) when the person who made the statement is dead or cannot be found, or is incapable of giving
evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained
without an amount of delay or expense which the court considers unreasonable or
b) when person who made the statement is examined as witness before the court and court is of

opinion that the statement should be admitted in evidence in the interest of justice in the case.

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