In a significant ruling, the Allahabad High Court has dismissed Patanjali Ayurved’s plea to waive a hefty penalty of ₹273 crores for alleged violations of GST laws.The court’s decision underscores the stringent measures in place for tax compliance, emphasizing that penalties can be imposed without criminal proceedings under Section 122 of the GST Act.
The bench, comprising Justices Shekhar B. Saraf and Bipinchandra Dixit, clarified that the GST law provides a clear framework for imposing penalties in cases of tax violations, distinct from the criminal justice system. This ruling not only highlights the legal obligations businesses must adhere to but also serves as a reminder of the government’s commitment to enforcing tax regulations rigorously. As Patanjali navigates this legal landscape, the implications for its operations and reputation in the market remain to be seen.
