Balaji Pakaging Industry Vs Union of India (Karnataka High Court)
In the case of Balaji Packaging Industry vs Union of India, the Karnataka High Court addressed the petitioner’s challenge to Section 146 of the Finance (No. 2) Act, 2024, and a related notification that limited waiver of interest and penalties only to notices issued under Section 73 of the CGST Act. The petitioner contended that its show cause notice had been issued under Section 74 instead, which excluded them from the amnesty benefits, and sought a writ to either quash the notice or direct authorities to treat it under Section 73 to enable eligibility for the Amnesty Scheme.
After hearing arguments, the petitioner expressed willingness to opt for the Amnesty Scheme under Section 128A of the CGST Act. The Court accepted this position and set aside the previous order passed under Section 74. It remitted the case to the adjudicating authority (Respondent No. 5) to reconsider the matter under Section 73, enabling the petitioner to apply for relief under the Amnesty Scheme. The Court directed that appropriate orders be passed within a week of the petitioner’s appearance, scheduled for 01.04.2025, while clarifying that it expressed no opinion on other issues raised in the case.
