M/S. Susee Agencies vs. The Commissioner Of CGST And Central Excise

Facts

The petitioner, M/s. Susee Agencies, represented by its partner Shri S. Kaniraj, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an order-in-appeal passed by the Commissioner of CGST & Central Excise (Appeals) on September 27, 2023. The impugned order confirmed a demand of interest amounting to Rs. 2,26,54,190/- and imposed a penalty of Rs. 16,58,63,966/-. The petitioner sought to quash these specific confirmations from the appellate order. The writ petition was filed under Article 226 of the Constitution of India.

Held

The Court recorded the petitioner's submission and endorsement seeking to withdraw the writ petition in order to avail the benefit of the newly inserted Section 128A of the CGST Act, which pertains to interest and penalty. Based on this request, the Court allowed the withdrawal. Consequently, the writ petition was dismissed as withdrawn. The Court also stated that there would be no order as to costs, and all connected miscellaneous petitions were closed. No specific findings were made on the merits of the original challenge to the interest and penalty demands, as the case was disposed of on the procedural ground of withdrawal.

Key Issues

1. Whether the petitioner is entitled to withdraw the writ petition to avail the benefit of newly inserted Section 128A of the CGST Act concerning interest and penalty? The petitioner argued that they wished to withdraw the writ petition to take advantage of the newly inserted Section 128A of the CGST Act, which presumably offers a benefit related to interest and penalty. The petitioner's counsel made an endorsement to this effect, seeking permission to withdraw. The respondents did not present any arguments as the petitioner sought withdrawal.