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

Raghav Enterprises' compounding application was allowed and immunity from prosecution was granted. Later, the Commissioner finds that during the compounding proceedings Raghav had concealed material particulars and had given false evidence. Which statement is correct under the CGST Rules?

Immunity may be withdrawn at any time by the Commissioner if satisfied that the person concealed material particulars or gave false evidence in the compounding proceedings. The person can then be tried for the offence, and the Act applies as if no immunity had been granted. Payment of the compounding amount does not prevent this.

  1. AImmunity cannot be withdrawn once the compounding amount is paid
  2. BImmunity may be withdrawn at any time, and Raghav may be tried for the offence as if no immunity had been grantedCorrect
  3. CImmunity may be withdrawn only within thirty days of the order
  4. DImmunity is withdrawn automatically, and the compounding amount paid must be forfeited without any trial

Explanation

The rules provide that immunity may at any time be withdrawn by the Commissioner if satisfied that the person concealed material particulars or gave false evidence during compounding. The person may then be tried for the offence and the Act applies as if no immunity had been granted. There is no thirty-day limit on withdrawal, and it is not automatic.

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