Tvl Annai Enterprises Vs Deputy State Tax Officer (Madras High Court)
The Madras High Court considered a writ petition challenging the order dated 13.08.2025 rejecting the petitioner’s application in Form GST SPL-02 dated 15.03.2025. The rejection concerned interest and penalty levied under Sections 50 and 73(9) of the Tamil Nadu Goods and Services Tax Act, 2017, in relation to self-assessed tax.
The impugned order referred to Circular No. 238/20?4 dated 15.10.2024 and its Table No. 4, stating that the benefit of waiver of interest and penalty would not apply where interest was demanded due to delayed reporting of a supply in the return, as such interest related to self-assessed liability and was recoverable under Section 75(12).
The respondent had also noted that the petitioner, despite being afforded sufficient opportunity, had failed to appear and prosecute the application.
Before the High Court, it was brought to the Court’s notice that the Principal Seat was seized of a batch of matters concerning whether the benefit of the Amnesty Scheme under Section 128A of the Central Goods and Services Tax Act, 2017, could be extended in similar circumstances. The decision in those matters was awaited.
The Court noted that the petitioner had disclosed the tax liability in GSTR-1 but had failed to discharge the corresponding liability while filing the monthly GSTR-3B returns. The Assessment Order dated 09.06.2023 appeared to have been passed under Section 73 of the respective GST enactments.
Prima facie, the Court found no statutory embargo against entertaining the petitioner’s application seeking the benefit of the Amnesty Scheme under Section 128A, subject to satisfaction of the prescribed conditions. The Court also noted that the GST Council had recommended insertion of Section 128A after taking note of practical difficulties encountered by taxpayers following the rollout of GST from 01.07.2017.
Without expressing any opinion on the merits, the High Court remitted the matter to the respondent for fresh consideration after the Principal Seat decides the pending batch concerning Section 128A. The respondent was directed to reconsider the petitioner’s application and pass fresh orders in accordance with the law declared in those proceedings.
The writ petition was accordingly disposed of, with no order as to costs, and the connected miscellaneous petition was closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present Writ Petition has been filed challenging the impugned order dated 13.08.2025, whereby the application submitted by the petitioner in Form GST SPL-02, dated 15.03.2025, has been rejected. The relevant observations contained in the impugned order read as follows:
3. The above interest and penalty had been levied u/s 50 It 73(9) of the Tamilnadu Goods and Service Tax Act 2017 for self assessed tax. As per circular no.238/2014 dt,15 t0.2624 in Table No.4 says that “However, the benefit of waiver of interest and penalty shall not be applicable in the cases where the interest has been demanded on account of delayed reporting of any supply in the return, as sick interest is related to demand of interest on self-assessed liability and dots not pertain to any demand of tax dues and is directly recoverable under sub-section (12) of section 75
2. The impugned order has also been passed taking note of the fact that, despite sufficient opportunity having been afforded, the petitioner failed to appear before the respondent and prosecute the application.
3. It is brought to the notice of this Court that the Principal Seat of this Court is presently seized of a batch of matters involving the question as to whether the benefit of the Amnesty Scheme under Section 128A of the Central Goods and Services Tax Act, 2017, is liable to be extended in similar circumstances. The decision of the Principal Seat in the said batch of cases is WEB awaited.
4. There is no dispute that the petitioner had disclosed the tax liability in GSTR-1, but failed to discharge the corresponding tax liability while filing the monthly GSTR-3B returns. The Assessment Order dated 09.06.2023 appears to have been passed under Section 73 of the respective GST enactments. Prima facie, there appears to be no statutory embargo in entertaining the petitioner’s application seeking the benefit of the Amnesty Scheme under Section 128A of the GST Act, subject to the petitioner satisfying the conditions prescribed thereunder.
5. There are also indications that the GST Council had itself recommended the insertion of Section 128A into the GST Act after taking note of the practical difficulties encountered by taxpayers following the rollout of the GST regime with effect from 01.07.2017. These aspects are also likely to form part of the consideration before the Principal Seat in the pending batch of cases.
6. Therefore, without expressing any opinion on the merits of the controversy, this Court is inclined to remit the matter to the respondent for fresh consideration after the decision of the Principal Seat in the batch of cases is rendered. Upon the pronouncement of the said decision, the respondent shall reconsider the petitioner’s application and pass fresh orders in accordance with the law declared therein. It is made clear that the respondent shall abide by and give effect to the decision to be rendered by the Principal Seat in the batch of cases relating to Section 128A of the GST Act, which is presently being heard by the Hon’ble Mr.Justice Senthilkumar Ramamoorthy.
7. The Writ Petition stands disposed of accordingly. There shall be no order as to costs. Consequently, the connected Miscellaneous Petition is closed.
