Ayiswarya Polymers Vs Assistant Commissioner of GST And Central Excise (Madras High Court)
The Madras High Court considered a writ petition challenging an order rejecting the petitioner’s application for waiver under Section 128-A of the applicable GST enactments.
An Order-in-Original was issued on 30.12.2022. Pursuant to the said order, the petitioner made payments on 27.03.2023 and 06.09.2024. It was common ground between the parties that the entire tax demand under the Order-in-Original had been discharged. However, the petitioner mistakenly remitted a sum of ₹3,69,334 under the IGST head instead of the CGST and SGST heads. On that basis, the application for waiver under Section 128-A was rejected, and the rejection order was challenged before the High Court.
The respondent submitted that no interference was warranted since the petitioner had admittedly made payment under the IGST head instead of the CGST and SGST heads.
The Court noted that under Section 128-A, a person is eligible to seek waiver if the full amount of tax payable under a show cause notice, an order under Section 73, or an appellate order under Section 107 has been paid. In the present case, it was undisputed that the petitioner had discharged the entire tax liability, although payment had been made under the wrong tax head.
