PRAYAGRAJ, June 3 -- The Allahabad high court has dismissed Patanjali Ayurved Limited's petition challenging Rs.273.5 crore goods and service tax (GST) penalty. Dismissing the writ petition, a division bench comprising Justice Shekhar B Saraf and Justice Vipin Chandra Dixit on May 29 rejected Patanjali's argument that such penalties constitute criminal liability and can be imposed only after a criminal trial.

The court ruled that tax authorities can impose penalties under Section 122 of the GST Act through civil proceedings without requiring criminal court trials. The judgment clarified that GST penalty proceedings are civil in nature and can be adjudicated by proper officers.

"After detailed analysis, it is clear that the proceeding un...