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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

An officer passes an order imposing a penalty on Kapoor Enterprises without issuing any notice or giving it a chance to present its case. Which provision of the general disciplines on penalty is violated?

Section 126(3) prohibits imposing any penalty on a person without giving that person an opportunity of being heard. An order passed without notice or hearing violates this discipline and is open to challenge.

  1. ANo penalty shall be imposed on any person without giving him an opportunity of being heardCorrect
  2. BPenalty must always be a fixed sum
  3. CPenalty may be imposed only for breaches above twenty-five thousand rupees
  4. DPenalty can be imposed only after voluntary disclosure

Explanation

Section 126(3) bars imposing any penalty without giving the person an opportunity of being heard. The other options state rules that do not exist in the section.

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