Introduction

The petitioner was subjected to assessment proceedings under Section 73 of the CGST Act for the assessment year 2018-19, culminating in an assessment order dated 25.04.2024. Pursuant to the insertion of Section 128A, which grants waiver of interest and penalty in specified cases, the petitioner filed an application on 19.02.2025 seeking waiver of interest and penalty after payment of the tax demand. Importantly, the application was filed before any appellate order had been passed.

The respondent rejected the application on the ground that the petitioner had allegedly availed Input Tax Credit (ITC) from non-existing taxpayers, cancelled dealers and return defaulters, and therefore was not eligible for the benefit under Section 128A.