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Informative

CAG Findings of Duty Non-Compliance do not Trigger Automatic Penalty u/s 11AA of CEA, SCN should be Issued: Punjab & Haryana HC

Update / Judgement Date

27 Dec 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Punjab and Haryana High Court ruled that automatic penalty provisions are triggered under the Central Excise Act when duty non-compliance is found. The Court's decision follows the Comptroller and Auditor General's (CAG) findings that highlight the non-compliance with duty payment. The ruling underscores the principle that non-payment of due excise duties attracts an automatic penalty, emphasizing the importance of compliance in indirect tax regulations.