Mohan, an unregistered person under GST, purchases the goods supplied by Ramesh who is a registered person without receiving a tax invoice from Ramesh and thus helps in tax evasion by Ramesh. A disciplinary action is tak

Answer 4(a) The levy of penalty is subject to a certain disciplinary regime which is based on jurisprudence, principles of natural justice and principles governing international trade and agreements. Such general discipline is enshrined in section 126. Accordingly: no penalty is to be imposed without affording an opportunity of being heard to the person proceeded against to rebut the allegations levelled against him, the penalty is to depend on the totality of the facts and circumstances of the case, the penalty imposed is to be commensurate with the degree and severity of breach of the provisions of the law or the rules alleged. Therefore, Mohan should challenge the order imposing penalty.