Jmj Plastics vs. The Appellate Deputy Commissioner (St)

Held

The Court held that the petitioner should be deemed to have acted as a prudent person, especially given the circumstances of the last day for availing the Amnesty Scheme. The Court acknowledged the possibility of technical impediments and server issues on March 31, 2025, which was also the end of the financial year. Applying the principle of substantial compliance and liberal construction of the Amnesty Scheme, as observed in the cited case of M/s.Sun Tamil Nadu Security Management Services Private Limited, the Court found the petitioner's explanation for not uploading the waiver application credible and plausible. The Court reasoned that the objective of Section 128A was to provide relief, and strict adherence to online filing procedures should not penalize a taxpayer who has otherwise complied significantly. The ratio decidendi is that substantial compliance with beneficial schemes, coupled with credible explanations for minor procedural lapses due to technical issues, should be accepted to grant the intended relief. The Court directed the petitioner to submit a manual application for waiver before the second respondent, which should be accepted and disposed of in accordance with Section 128A of the GST Act.

Facts

The petitioner, Tvl.J.M.J.Plastics, received an assessment order dated August 27, 2024, for the assessment year 2019-20, demanding a tax of Rs. 2,63,702/- along with interest and penalty. Aggrieved, the petitioner filed an appeal with the first respondent, the Appellate Deputy Commissioner(ST), on December 18, 2024. During the pendency of this appeal, an Amnesty Scheme was introduced via Section 128A of the CGST Act, 2017. To avail this scheme, taxpayers were required to withdraw their appeals, pay the entire tax amount, and file a waiver application. The petitioner withdrew their appeal and paid the tax on March 31, 2025, the last date for the scheme. However, the petitioner claims that due to technical glitches, the waiver application could not be uploaded, preventing them from benefiting from the scheme and rendering the assessment order final.

Key Issues

1. Whether the petitioner, having withdrawn their appeal and paid the tax amount by the stipulated deadline, should be granted relief under the Amnesty Scheme despite the alleged technical failure in uploading the waiver application? This issue turns on the interpretation and application of Section 128A of the CGST Act, 2017, and the principles of substantial compliance and liberal construction of beneficial schemes. Petitioner's contention: The petitioner argued that they acted diligently by withdrawing the appeal and paying the tax on the last date. They contended that the failure to upload the waiver application was due to technical glitches, a common occurrence given the rush on the last day. They relied on the principle that the scheme should be construed liberally to achieve its objective and cited the case of M/s.Sun Tamil Nadu Security Management Services Private Limited, Madurai Vs. The Commissioner of GST and Central Excise, Madurai Region, which allowed relief based on substantial compliance. Revenue's contention: The judgment records no specific arguments from the respondents.