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

Deepak Agro, Indore, was granted immunity from prosecution by an order under rule 162(3) after paying tax, interest and penalty and the compounding amount. Later the department finds that Deepak Agro had given false evidence during the compounding proceedings. What action can the Commissioner take?

The Commissioner may withdraw the immunity at any time because false evidence was given in the compounding proceedings. The person can then be tried for the original offence or any other offence connected with those proceedings, as if immunity had never been granted.

  1. AWithdraw the immunity at any time, after which the person may be tried for the offence and any other offence connected with the compounding proceedingsCorrect
  2. BWithdraw the immunity only within ninety days of the order
  3. CRefund the compounding amount and close the matter
  4. DDo nothing, as compounding under section 138(3) permanently bars all further proceedings

Explanation

Rule 162(8) lets the Commissioner withdraw immunity at any time if the person concealed material particulars or gave false evidence during compounding. The person may then be tried as if no immunity had been granted. The ninety-day limit applies only to deciding the application.

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