M/S.Raka Traders vs. The Commissioner Of CGST And Central Excise

Facts

The petitioner, M/s. Raka Traders, represented by its Manager, filed a Writ Petition before the Madurai Bench of the Madras High Court challenging an order passed by the Commissioner of CGST & Central Excise (Appeals). The impugned order, dated 27.09.2023, confirmed a demand of interest amounting to Rs. 1,24,45,801/- and imposed a penalty of Rs. 9,06,34,925/-. The petitioner sought to quash these specific portions of the appellate order. The writ petition was filed under Article 226 of the Constitution of India.

Held

The Court recorded the submission made by the learned counsel for the petitioner seeking permission to withdraw the Writ Petition. The petitioner's counsel had made an endorsement stating the intention to withdraw the petition in order to obtain the benefit of waiver of interest and penalty as provided in the newly inserted Section 128A vide the Finance (No.2) Bill, 2024. Accordingly, the Court recorded the withdrawal and dismissed the writ petition as withdrawn. No specific findings were made on the merits of the case or the validity of the impugned order, as the matter was disposed of on the petitioner's request for withdrawal. No issue was expressly left undecided.

Key Issues

1. Whether the petitioner is entitled to withdraw the Writ Petition to avail the benefit of waiver of interest and penalty under the newly inserted Section 128A of the Finance (No.2) Bill, 2024? The petitioner argued that they wished to withdraw the writ petition to take advantage of the newly inserted Section 128A of the Finance (No.2) Bill, 2024, which provides for a waiver of interest and penalty. The petitioner's counsel made an endorsement to this effect. The respondents did not record any specific arguments in the judgment.