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

The Commissioner granted immunity from prosecution to Vihaan Enterprises under Rule 162(3) after compounding. Later it emerges that Vihaan had concealed material particulars during the compounding proceedings. What can the Commissioner do?

The Commissioner can withdraw the immunity at any time. Under Rule 162, concealment of material particulars or false evidence during compounding allows withdrawal, after which the person may be tried for the offence as if no immunity had ever been granted.

  1. ANothing, because immunity once granted is final
  2. BWithdraw the immunity at any time, after which Vihaan may be tried as if no immunity had been grantedCorrect
  3. CWithdraw immunity only within 30 days of the order
  4. DOnly recover the compounding amount again

Explanation

Rule 162(8) allows the Commissioner to withdraw immunity at any time 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 30-day limit.

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