"COLLUSION / CONNIVANCE"

These two words are not part of Sec. 74 of GST Laws. They were part of First Proviso to Sec. 73 of Service Tax Laws i.e. FA'1994 (which is equivalent to Sec. 74 of GST).

Then also, should we raise an issue with these words? My view, YES

1. Gheru Lal Bal Chand - Punjab and Haryana High Court In legal jurisprudence, the liability can be fastened on a person who either acts fraudulently or has been a party to the collusion or connivance with the offender.

ARR: Where a person is not connected with such event or an act penalty could not be imposed directly or vicariously.

2. Hetero Durgs Ltd. - CESTAT Bangalore

No knowledge collusion/connivance of appellant in substitution/forging documents/misappropriation of DDs amount. Demand confirmed against appellant in undue haste not sustainable.

3. Nandish - Karnataka High Court

Where assessee filed application for rectification of order passed for confiscation of vehicle on ground that there was no connivance with transporter of goods, said application could not be rejected on ground that wrong vehicle number was mentioned in certain parts of rectification application.

4. Rajeev Khatri - Delhi High Court

No case of connivance had been established against appellant and he unknowingly abetted or instrumental in import of prohibited goods by actual importer; penalty under section 112(a) of Customs Act, 1962 was not imposable.

Thanks