GST Update
Desk of CA. Praveen Sharma – 832 Series (CAPS)
MADRAS HIGH COURT IN THE CASE OF Sun Tamil Nadu Security Management Services Private Limited,
Petitioner sought a mandamus directing authorities to accept its Section 128A application (waiver of interest/penalty) dated 30.06.2025.
Background: Assessment order 31.10.2022 (u/s 73) confirmed tax for FY 2018-19, interest for delays, and 10% penalty; part payments were appropriated.
Govt notified the Samadhan/128A scheme via Notif. 21/2024-CT (08.10.2024); tax had to be fully paid by 31.03.2025; application within three months per Rule 164(6).
Petitioner had cleared the balance tax on 27–28.01.2023; filed 128A application on 30.06.2025 (within Rule 164(6) window).
Dispute: Revenue argued ineligibility because the pending Section 107 appeal wasn’t withdrawn on/before 31.03.2025 as required by Section 128A(3) and Rule 164(7).
Petitioner, on 30.06.2025, also wrote to withdraw the appeal (A.No.237/2023), but this was after the notified cutoff.
Court’s view: Scheme must be read liberally to effectuate its purpose; substantial compliance shown—full tax paid by due date and application filed in time; later withdrawal step shouldn’t defeat relief.
Held: Writ allowed. Authority directed to process the 128A application under Notif. 21/2024-CT / State notif. and grant benefits; no costs.
Bottom line: Delay in formal appeal withdrawal (post-31.03.2025) didn’t bar 128A relief where tax payment and application were timely and intent to withdraw was evidenced.
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