M/S Railtrack Concrete Products PVT LTD vs. The Union Of INDIA And Ors

Facts

The petitioner, M/s Railtrack Concrete Products Pvt Ltd, filed a writ petition challenging an Order-in-Original dated 06.02.2023 and an Order-in-Appeal dated 14.11.2023. These orders were issued pursuant to a Demand-Cum-Show-Cause Notice dated 09.02.2022. The petitioner sought to withdraw the writ petition to file an application under Section 128A of the CGST Act for waiver of interest or penalty. The last date for filing such an application under the scheme was 31.03.2025. The petitioner intended to file this application before the competent authority on or before the aforementioned date.

Held

The Court allowed the application for withdrawal of the writ petition. The reasoning was based on the petitioner's submission that they wished to withdraw the writ petition (W.P.[C.] no. 5476/2024) to enable them to file an application under Section 128A of the CGST Act for waiver of interest or penalty or both. This application was to be filed before the competent authority on or before 31.03.2025, which was the last date for filing under the scheme. The Court took note of the circular cited by the petitioner, which mandates withdrawal of pending appeals or writ petitions before filing for waiver. The ratio decidendi is that a taxpayer is permitted to withdraw a pending writ petition to pursue a statutory remedy for waiver of interest or penalty, provided it is done within the prescribed timelines and in accordance with relevant circulars.

Key Issues

1. Whether the applicant-writ petitioner is permitted to withdraw the writ petition (W.P.[C.] no. 5476/2024) to file an application under Section 128A of the CGST Act for waiver of interest or penalty or both. Petitioner's Argument: The petitioner, through its counsel, referred to Circular No. 238/32/2024-GST dated 15.10.2024, specifically Clause 3.1.6. This clause outlines the procedure for taxpayers who have filed appeals or writ petitions against orders related to interest or penalty, requiring them to withdraw such proceedings before filing an application for waiver under Section 128A of the CGST Act. The petitioner's intention is to comply with this procedure and file the waiver application before the statutory deadline of 31.03.2025. Revenue's Argument: The judgment does not record any specific arguments made by the respondents (Union of India and Ors., Commissioner Appeals CGST, Additional Commissioner Appeals CGST, Superintendent Silchar Range 1, and State of Assam).