M/S Sree Balaji Pakaging Industry vs. Union Of INDIA - Karnataka High Court, 28 March 2025

In this petition, the petitioner seeks the following reliefs: “a) Issue a writ or order or direction in the nature of any writ declaring that Section 146 of the Finance (No.2) Act, 2024 (Annexure-‘A’) and Notification No.21/2024 – Central Tax dated 08.10.2024 (Annexure-‘B’) issued by the 1st Respondent in extending the benefit of waiver of interest and penalty only to notices issued under Section 73 of the Central Goods and Service Tax Act, 2017 are ab initio void, illegal and ultra vires the constitution; and thereby,

b) Issue a writ, order or direction in the nature of Certiorari by quashing the impugned Show Cause Notice (GST) bearing SCN No. 96/2021-22 (CTA-1)/AC (DIN- 20210857TD0000332103) dated 18-08-2021 issued by the 4th Respondent (Annexure- 'C') and consequential impugned Order-In-Original bearing Sl.No. 195/2024-25 9 (DIN- 20241057YV000000D0DC) dated 28.10.2024 in FORM GST DRC-07 passed by the 5th Respondent (Annexure- 'D');

c) Alternatively, issue a writ or order or direction in the nature of certiorari by quashing the impugned Show Cause Notice (GST) bearing SCN No. 96/2021-22 (СТА-1)/AC (DIN-20210857TD0000332103) dated 18-08-2021 issued by the 4th Respondent (Annexure- 'C') by invoking the provisions of Section 74 of the CGST Act, 2017 and thereby issue a writ or order or direction in the nature of mandamus NC: 2025:KHC:13244 WP No. 6425 of 2025

directing the Respondents to treat the show cause notice as if it were issued under Section 73 of the CGST Act, 2017 and thereby to extend the benefit of Section 146 of the Finance (No. 2) Act, 2024 (Annexure- 'A') and Notification No.21/2024-Central Tax dated 08.10.2024 (Annexure- 'B') issued by the 1st Respondent;

d) Alternatively, issue a writ or order or direction in the nature of any writ by extending the benefit of waiver of interest and penalty to the Petitioner as per Section 128A of the Central Goods and Service Tax Act, 2017 inserted through Section 146 of the Finance (No. 2) Act, 2024 (Annexure- 'A') and Notification No.21/2024-Central Tax dated 08.10.2024 (Annexure- 'B');

e) Pass such other order/s or direction/s as deemed fit and proper in the facts and circumstances of the case in the interest of justice.

Heard learned counsel for the petitioner and learned CGC for respondent No.1 and learned counsel for respondent No.2 and perused the material on record.

After arguing the matter for sometime, learned counsel for the petitioner submits that the petitioner intends to avail the benefit of Amnesty Scheme as contemplated under Section 128(A) of the Central Goods and Service Act, 2013 (for short “the CGST NC: 2025:KHC:13244 WP No. 6425 of 2025

Act”) and as such, the impugned order purported to have been passed under Section 74 of the CGST Act may be set aside and the matter may be remitted back to respondent No.5 for reconsideration afresh, in accordance with law, by treating the proceedings as proceedings under Section 73 of the CGST Act and pass appropriate order under Section 73(9) of the CGST Act and by directing respondent No.5 to grant the benefit of Amnesty Scheme, in favour of the petitioner, who would file such an application before respondent No.5. 4. The aforesaid submission is placed on record.

In view of the aforesaid facts and circumstances and the submission made by learned counsel for the petitioner that the petitioner intends to avail the benefit of Amnesty Scheme under Section 128(A) of the CGST Act, I deem it just and appropriate to set aside the impugned order at Annexure-D and remit the matter back to respondent No.5 for reconsideration afresh, in accordance with law by issuing certain directions.

In the result, I pass the following: ORDER i. The petition is allowed. NC: 2025:KHC:13244 WP No. 6425 of 2025

ii. The impugned Order-in-Original at Annexure-D dated 28.10.2024 passed by respondent No.5, is hereby set aside. iii. The matter is remitted back to respondent No.5 for reconsideration afresh, in accordance with law. iv. The petitioner shall appear before respondent No.5 on 01.04.2025 without awaiting further notice from respondent No.5. v. Respondent No.5 shall pass appropriate orders by treating the proceedings under Section 73 of the CGST Act and pass appropriate orders under Section 73(9) of the CGST Act, within one week from 01.04.2025. vi. The petitioner is also entitled to file an application to avail the benefit of Amnesty Scheme and if such an application is filed before respondent No.5, respondent No.5 shall grant petitioner the benefit of Amnesty Scheme, as contemplated under Section 128(A) of the CGST Act, in accordance with law. vii. All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 1 Sl No.: 26