Amendment to Section 112: Appeal Conditions for Penalty Orders
Section 112 of the Central Goods and Services Tax Act has been amended to include a new provision regarding appeals against orders that demand a penalty but do not involve a demand for tax. According to this amendment, if an order imposes a penalty without any associated tax demand, an appeal against such an order can only be filed if the appellant pays an amount equal to ten percent of the penalty. This payment is in addition to any amount required under the provision of sub-section (6) of section 107. This change aims to ensure that a portion of the penalty is paid upfront before an appeal can be lodged, possibly to discourage frivolous appeals and ensure commitment from the appellant.
Note: It is an AI generated summary for reference purpose only.
Amendment of section 112.
130. In section 112 of the Central Goods and Services Tax Act, in sub-section (8), the following proviso shall be inserted, namely:––
“Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty, in addition to the amount payable under the proviso to sub-section (6) of section 107 has been paid by the appellant.”.
