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CA Final · Indirect Tax Laws · Offences and Penalties and Ethical Aspects under GST

After the Commissioner granted immunity from prosecution to Gupta Metals under Rule 162(3), it came to light that Gupta Metals had concealed material particulars during the compounding proceedings. What can the Commissioner do?

The Commissioner may withdraw the immunity at any time, because material particulars were concealed. Gupta Metals can then be tried for the original offence and for any other offence connected with the compounding proceedings, as if no immunity had been granted.

  1. AWithdraw the immunity at any time, after which Gupta Metals may be tried for the offence and for any other offence connected with the compounding proceedingsCorrect
  2. BWithdraw the immunity only within ninety days of the order
  3. CDo nothing, because compounding abates all proceedings permanently
  4. DOnly forfeit the compounding amount already paid

Explanation

Rule 162(8) lets the Commissioner withdraw immunity at any time if the person concealed material particulars or gave false evidence. The person may then be tried for the original offence or any other offence connected with the compounding proceedings. The ninety days in Rule 162(3) is for deciding the application, not for withdrawing immunity. Abatement under section 138(3) rests on a valid compounding.

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