Tvl. Star Plastics vs. The The Appellate Deputy Commissioner (St)

Held

The Court held that the petitioner had substantially complied with the Amnesty Scheme by withdrawing the appeal and paying the tax amount by the stipulated date of March 31, 2025. The Court found the petitioner's explanation regarding technical glitches preventing the upload of the waiver application to be credible and plausible, especially considering the heavy filing rush on the last day of the financial year and the Amnesty Scheme deadline. Citing the principle of liberal construction of the Amnesty Scheme and referencing a prior order in W.P.(MD)No.21330 of 2025, the Court decided that the delay or failure in uploading the waiver application should not be held against the petitioner. The ratio decidendi is that substantial compliance with the spirit and intent of a beneficial scheme like the Amnesty Scheme, coupled with a plausible explanation for procedural shortcomings, should be given due consideration. The Court directed the petitioner to submit a manual application for waiver to the second respondent, which should be accepted and disposed of in accordance with Section 128A of the GST Act. The appeal was not expressly left undecided.

Facts

The petitioner, Tvl.Star Plastics, filed a writ petition seeking a direction to restore its appeal against an assessment order dated December 29, 2023, which demanded Rs. 1,32,896/- plus interest and penalty for the assessment year 2017-18. The petitioner had filed an appeal on April 27, 2024. During the pendency of the appeal, an Amnesty Scheme was introduced via Section 128A of the CGST Act, 2017, allowing for the conclusion of proceedings if the tax amount was paid and the appeal was withdrawn. The petitioner withdrew its appeal on March 31, 2025, and paid the tax amount. However, it claims that due to technical glitches, the required waiver application could not be uploaded, preventing it from availing the Amnesty Scheme benefits and rendering the assessment order final.

Key Issues

1. Whether the petitioner's failure to upload the waiver application for the Amnesty Scheme, due to alleged technical glitches, should prevent it from availing the scheme's benefits, particularly when the tax was paid and the appeal was withdrawn within the stipulated period, turning on Section 128A of the CGST Act, 2017. Petitioner's arguments: The petitioner contended that it substantially complied with the Amnesty Scheme by withdrawing the appeal and paying the tax amount by the deadline of March 31, 2025. It argued that the inability to upload the waiver application was due to technical issues and heavy filing rush on the last day, making its explanation credible. It relied on the principle of liberal construction of the scheme and the presumption of prudent action under Section 114 of the Indian Evidence Act. The petitioner also referred to a previous High Court order in W.P.(MD)No.21330 of 2025 (M/s.Sun Tamil Nadu Security Management Services Private Limited) which allowed benefits despite a delay in appeal withdrawal. Revenue's arguments: The judgment does not record any specific arguments made by the respondents.