Introduction

The petitioner was subjected to assessment proceedings for the Financial Year 2018-19, culminating in an assessment order dated 25.04.2024 under Section 73 of the CGST Act. Thereafter, the petitioner paid the tax demanded and, before any appellate order was passed, filed an application dated 19.02.2025 seeking waiver of interest and penalty under the newly inserted Section 128A of the CGST Act.

The Department 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, making the petitioner ineligible for the benefit of Section 128A.