M/s Bethanachi Amman Traders vs. Deputy State Tax Officer – (W.P.(MD)
No.34613 of 2025 - Madras High Court)
(Manual
Waiver Application Under Section 128A Cannot Be Entertained Without Proof of
Online Attempt)
Introduction
The Madurai Bench of the
Madras High Court, in its judgment dated 2 December 2025, examined whether a
GST registered dealer can seek waiver of interest and penalty under Section
128A of the CGST Act through a manual application when the statutory online mechanism
was not followed. The Court clarified that mere allegations of technical
glitches are insufficient unless supported by documentary proof. However, the
Court also protected the taxpayer from hardship by restoring the statutory
appeal that had been withdrawn to avail the waiver scheme.
Case
Details
The writ petition was
filed as W.P.(MD) No.34613 of 2025 before the Madurai Bench of the Madras High
Court. The petitioner was M/s Bethanachi Amman Traders, represented by its
partner, holding GSTIN 33AAKFB7444D1ZO, and engaged in trading activities at Thanjavur.
The respondent was the Deputy State Tax Officer / Deputy Commercial Tax
Officer, Thanjavur–1 Assessment Circle. The matter was decided by Hon’ble Mr.
Justice Krishnan Ramasamy.
Facts of
the Case
The petitioner was
subjected to an assessment order dated 26 December 2023, against which an
appeal was filed before the Appellate Authority on 7 March 2024. Subsequently,
the Government introduced a waiver scheme under Section 128A of the GST Act,
granting relief from interest and penalty upon payment of tax dues. With the
intention of availing the benefit of this scheme, the petitioner withdrew the
appeal on 31 March 2025 and paid the entire tax liability.
The petitioner claimed
that while attempting to file the waiver application online within the
prescribed time, technical glitches prevented successful submission. As a
result, a manual waiver application was submitted to the respondent. However,
the respondent refused to accept or process the manual application, leading the
petitioner to approach the High Court seeking a writ of mandamus to direct
acceptance and disposal of the waiver application.
Submissions
of the Petitioner
The petitioner argued
that the failure to submit the waiver application online was not deliberate but
occurred due to technical issues on the GST portal. It was submitted that since
the tax dues had already been paid and the appeal was withdrawn solely to avail
the waiver scheme, rejection of the manual application would cause serious
hardship. The petitioner contended that the objective of Section 128A is to
provide relief to taxpayers and that procedural technicalities should not
defeat substantive benefits.
Stand of
the Respondent
The learned Additional
Government Pleader opposed the writ petition by contending that the waiver
scheme under Section 128A is strictly procedural and mandates online filing
within the stipulated time. The respondent pointed out that the petitioner had
not produced any evidence, such as screenshots or error logs, to prove that an
online attempt was made. In the absence of such proof, the manual application
could not be entertained, and the writ petition deserved dismissal.
Findings of
the Court
The Court carefully
examined the submissions of both sides and noted that if the petitioner had
genuinely attempted to file the waiver application online before the cut-off
date of 30 June 2025, some documentary proof should have been available. The
Court observed that the petitioner failed to place any material on record to
substantiate the claim of technical glitches. In such circumstances, the Court
held that the plea of an unsuccessful online attempt was not believable.
Accordingly, the Court
found merit in the submissions of the respondent and held that no direction
could be issued to accept or consider the manual waiver application under
Section 128A of the GST Act.
Relief
Granted by the Court
While declining to grant
relief with respect to the manual waiver application, the Court took note of
the fact that the petitioner had withdrawn the statutory appeal solely to avail
the waiver scheme. The Court observed that rejection of the waiver application
would automatically revive the petitioner’s right to appeal. In order to
prevent injustice, the Court restored the appeal that had been withdrawn on 31
March 2025.
The Appellate Authority
was directed to take the restored appeal on file, provided it was otherwise in
order, and to dispose of the same in accordance with law.
Final Order
The writ petition was
disposed of with no order as to costs. The connected miscellaneous petition was
also closed. The Court refused to direct acceptance of the manual waiver
application but restored the petitioner’s statutory appeal before the Appellate
Authority.
Conclusion
This judgment serves as a
clear reminder that waiver schemes under GST, including Section 128A, are
strictly governed by procedural requirements. Claims of technical glitches must
be supported by documentary evidence, failing which manual applications cannot
be entertained. At the same time, the Court adopted a balanced approach by
restoring the petitioner’s appeal to ensure that the taxpayer is not left
remediless. The ruling highlights the importance of maintaining proof of online
compliance attempts and reinforces judicial reluctance to dilute statutory
procedures under GST law.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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