The Hon’ble Gujarat High Court in Manoj Ramkishan Agrawal & Anr. v. Union of India & Anr. [R/Special Civil Application No. 7965 of 2026 dated June 17, 2026] dismissed the writ petition filed by the partners of a partnership firm challenging the Order-in-Original imposing penalties upon them under Section 122(1A) and Section 122(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), holding that the adjudicating authority has recorded detailed and categorical findings establishing the knowledge, consent and active participation of the partners in the generation of fake invoices and e-way bills without actual supply of goods, fraudulent availment of Input Tax Credit (“ITC”) and routing of funds through hawala channels. The Court held that any person who retains the benefit of the specified transactions and at whose instance such transactions are conducted is liable to penalty under Section 122(1A) of the CGST Act, and that factual issues, including the retrospective applicability of Section 122(1A) of the CGST Act, could be examined by the Appellate Authority under Section 107 of the CGST Act.
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