Archive · 5 Jun 2025
Allahabad HC Upholds ₹273 Crore GST Penalty on Patanjali
Patanjali, a company, was told to pay a big fine (Rs 273 crore) by the government for GST issues.
They went to court, but the court said they still have to pay the fine.
The court said the government can issue a penalty without a special criminal trial, and it is a civil case.
The investigation was about suspicious transactions involving firms using tax credits, possibly without proper income tax records.
The court dismissed Patanjali's arguments and upheld the penalty.
Allahabad High Court dismissed Patanjali Ayurved's challenge to a Rs 273.5 crore GST penalty.
The court determined that the penalty could be imposed through civil proceedings.
The GST authorities investigated suspicious transactions involving firms with high ITC utilization.
DGGI issued a show cause notice for the penalty in April 2024.
Patanjali alleged the penalty constituted criminal liability.
- Who
- Patanjali Ayurved and the Allahabad High Court.
- What
- Allahabad High Court dismissed Patanjali Ayurved's petition against a Rs 273.5-cr GST penalty.
- When
- Published recently; Showcause notice issued in April 2024
- Where
- Allahabad High Court.
- Why
- To challenge a GST penalty of Rs 273.5 crore imposed by GST authorities.
Patanjali Ayurved's Perspective
Court's Ruling
Legal Proceedings
Patanjali Ayurved's Perspective
Patanjali argued penalties constituted criminal liability, necessitating a criminal trial.
Court's Ruling
The court ruled that penalties can be imposed through civil proceedings.
- Company
- Patanjali Ayurved Ltd
- Penalty Amount
- Rs 273.5 crore
- Court
- Allahabad High Court
- Type of Penalty
- Goods and Services Tax (GST)
- Relevant Law
- CGST Act, 2017
- Investigation Allegation
- Circular trading of tax invoices
