The Hon’ble High Court of Judicature at Allahabad in the case of Comfort Battery vs Additional Commissioner Central Goods and Services Tax [Writ Tax No. 2097 of 2026, order dated April 22, 2026] held that penalty demand cannot be confirmed where the statutory Form GST DRC-01 mentioned ‘0’ penalty, even though the annexed detailed show cause notice proposed penalty. The Court held that Rule 142 of the CGST Rules mandates complete disclosure of tax, interest and penalty in Form GST DRC-01 itself, and any ambiguity therein would defeat the statutory right available under Section 74(8) of the CGST Act. Accordingly, the adjudication order confirming penalty was set aside and liberty was granted to the Revenue to rectify the notice and proceed afresh.
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