GST Penalty u/s 122 imposed for Fake Invoice Issuance: Madras HC directs to file Reply on 25% deposit, Quashes Penalty Order

The Madras High Court has quashed a "penalty order" on a "GST penalty under Section 122" for "fake invoice issuance" and has directed a "reply on a 25% deposit." The court's decision, which is a significant victory for the taxpayer, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.