2025 (7) TMI 270 - HC - GST

Challenge to assessment order - discharge of tax liability and interest after suffering impugned assessment order - settlement of case under amnesty scheme - HELD THAT - Considering the fact that the petitioner has also discharged the tax liability and interest Court is inclined to balance the interest of the revenue as also the petitioner by remitting the case to the first respondent re-consider the impugned order insofar as the imposition of penalty under Section 74 of the respective GST enactment alone. Petition disposed off.

Summary

The Madras High Court, through Justice C. Saravanan, disposed of the writ petition at admission after hearing counsel. The petitioner had discharged the tax liability (01.04.2024) and interest (04.04.2024) following the impugned Assessment Order dated 20.03.2024, and filed an appeal on 17.04.2024. Based on erroneous advice, the petitioner withdrew this appeal to avail the Government's 2024 Amnesty Scheme but later filed a fresh appeal on 21.03.2025, which was rejected on limitation grounds (order dated 08.04.2025). The Court referenced the Supreme Court rulings in Singh Enterprises v. CCE (2008) 3 SCC 70 and CCE & Customs v. Hongo India (2009) 5 SCC 791 to uphold the dismissal of the second appeal.Acknowledging that the petitioner's initial appeal withdrawal was based on wrong advice and that the petitioner will not seek a refund of tax paid, the Court balanced interests by remitting the matter to the first respondent to reconsider the penalty imposed under Section 74 of the GST enactment alone. This reconsideration is to be completed expeditiously, preferably within three months. The writ petition was disposed of with no costs, and connected petitions were closed.