Deputy Commissioner of CGST Archives - Tax Heal https://www.taxheal.com/tag/deputy-commissioner-of-cgst Complete Guide for Income Tax and GST in India Thu, 29 Oct 2026 12:05:15 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.4 Revocation of Approved Section 128A Tax Settlement Waiver via Form GST SPL-05 Is Impermissible and Quashed https://www.taxheal.com/c-saravanan-j-36.html Thu, 29 Oct 2026 12:05:15 +0000 https://www.taxheal.com/?p=143180 Revocation of Approved Section 128A Tax Settlement Waiver via Form GST SPL-05 Is Impermissible and Quashed Issue Whether the designated authority can revoke an approved tax settlement waiver granted under Section 128A via Form GST SPL-05 in non-fraud proceedings under Section 73, outside the specific exceptions outlined in Rule 164(16) or (17). Facts Period &… Read More »

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Revocation of Approved Section 128A Tax Settlement Waiver via Form GST SPL-05 Is Impermissible and Quashed

Issue

Whether the designated authority can revoke an approved tax settlement waiver granted under Section 128A via Form GST SPL-05 in non-fraud proceedings under Section 73, outside the specific exceptions outlined in Rule 164(16) or (17).

Facts

  • Period & Default: The case pertains to F.Y. 2018–19 and involved belated payment of tax and delayed filing of monthly returns / GSTR-3B by the petitioner.
  • Initiation of Proceedings: Assessment proceedings were initiated against the petitioner solely under Section 73 of the CGST/TNGST Act for non-fraud demands.
  • Discharge & Settlement: The petitioner fully discharged the primary tax liability and opted for a tax settlement waiver under Section 128A.
  • Approval & Revocation: The designated authority accepted the settlement application and formally issued Form GST SPL-05. However, this approval was subsequently revoked, and the original SCN proposals were confirmed against the petitioner.
  • Writ Challenge: Aggrieved by the revocation and confirmation of the demand, the petitioner filed a writ petition before the High Court.

Decision

  • Validity of Section 128A Waiver (In Favour of Assessee): Since proceedings were confined strictly to Section 73 and the tax liability stood fully discharged, the settlement waiver granted under Section 128A via Form GST SPL-05 was legally valid and binding.
  • Impermissibility of Revocation (In Favour of Assessee): Once Form GST SPL-05 is issued, revoking the approval via Section 161 or general powers is impermissible unless the specific statutory conditions under Rule 164(16) or (17) are satisfied.
  • Quashing and Remand (In Favour of Assessee / Matter Remanded): The controversy stood covered in favor of the assessee; consequently, the impugned confirmation order was quashed, and the matter was remitted to the respondents to pass fresh orders in accordance with law.

Key Takeaways

  • Finality of Section 128A Settlement: Issuance of Form GST SPL-05 granting a settlement waiver under Section 128A brings finality to eligible non-fraud tax disputes under Section 73, protecting taxpayers from arbitrary reopening.
  • Restrictions on Rectification/Revocation Powers: General powers like Section 161 cannot be invoked to revoke settled tax waivers unless strict statutory exceptions specified under Rule 164(16) or (17) are explicitly triggered.
HIGH COURT OF MADRAS
Hayakriva Associates and Builders
v.
Deputy Commissioner of CGST and Central Excise
C. Saravanan, J.
WP(MD) No. 27738 of 2026
WMP(MD)No. 21061 of 2026
SEPTEMBER  25, 2026
N. Sudalai Muthu for the Petitioner. Dr. Gowri Shankar, Sr. Central Govt. Standing Counsel for the Respondent.
ORDER
1. Mr. R. Gowri Shankar, learned Senior Central Government Standing Counsel takes notice for the respondents.
2. This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and the learned Senior Central Government Standing Counsel for the respondents.
3. The petitioner is before this Court challenging the impugned order dated 23.12.2025, whereby the proposal contained in the Show Cause Notice in SCN No. 05/2024 (O.C. No. 63/2024), dated 22.01.2024, has been confirmed for the tax period 2018–19.
4. The dispute arose on account of the belated payment of tax declared in the monthly returns and in GSTR-3B, as well as the belated filing of GSTR-3B. Subsequently, the petitioner opted to settle the dispute under Section 128A of the CGST Act, 2017, which was also accepted by the designated authority on 07.08.2025, with the issuance of Form GST SPL-05. However, the said order was subsequently revoked on 23.12.2025.
5. There is no dispute that the petitioner was proceeded against only under Section 73 and not under Section 74 of the respective GST enactments, 2017. There is also no dispute that the petitioner has discharged the tax liability, pursuant to which the application filed under Section 128A of the CG ST Act, 2017, was initially allowed on 07.08.2025.
6. The issue has now been considered by this Court in Incompressible Fluid Control System v. Asstt. Commissioner [2026] 189  113 GSTL 420 (Madras)/(2026) 45 Centax 261 (Mad.). The learned Senior Central Government Standing Counsel also fairly concedes that the issue is covered against the Department in view of the said decision of this Court. The conclusions in paragraphs 38 to 40 are reproduced below:
“38. The conclusions that follow from the above discussion and analysis of the relevant provisions may be summarised as under:
(i) The initiation of proceedings under Section 73 of applicable GST enactments is a sine qua non for filing an application for waiver.
(ii) If recovery measures were to be initiated under Section 79 of applicable GST enactments, without invoking Section 73, by relying on Section 75(12), the taxable person cannot file an application under Section 128A. On the other hand, once the revenue decides to determine liability under Section 73, whether in relation to self-assessed tax or otherwise, it is open to the taxable person to file an application under Section 128A.
(iii) Once an order accepting the waiver application is issued in Form GST SPL 05, unless the matter falls within the scope of sub-rule (16) or (17) of Rule 164, it is not open to the GST authorities to issue an order declaring that the earlier approval order is void by reference to Section 161 or otherwise.
(iv) If the order is not issued within the time limit prescribed in sub-rule (13), there shall be deemed approval of the application and conclusion of proceedings in terms of sub-rule (14), provided the substantive conditions stipulated in Section 128A are complied with.
(v) The implied exclusion of cases relating to self- assessed tax cannot be read into Section 128A. The meaning, as gleaned from the text and context, does not warrant such implied exclusion.
(vi) The scope and ambit of Section 128A cannot be curtailed by the issuance of Circular No. 238.
(vii) The time limits prescribed in Rule 164 are mandatory.
Adjudication of individual cases
39. The individual cases forming part of this batch are required to be decided in light of the above principles. These cases fall into distinct categories. The first category, which is the largest, consists of cases wherein the taxable person concerned otherwise fulfilled all the requirements of Section 128A and Rule 164, but the waiver application was rejected on the ground that such application pertained to self-assessed tax arising out of belated filing of GSTR 3B returns. As will be noticeable, the reason for rejection is couched in some cases as ineligibility for waiver of interest. This is merely another way of framing rejection of waiver applications in relation to self-assessed tax. In some of these cases, the rejection orders were issued beyond the time limit prescribed in sub-rule (13). All these rejections are untenable and liable to be set aside for reasons discussed earlier. The particulars of these cases are set out below in a table:
W.P. No. Petitioner Respondent / 1st Respondent Date of Application (Form GST SPL 02) Date of SCN (Form GST SPL 03) Reply (Form GST SPL 04) Date of Rejection (Form GST SPL 07) (Impugned Order) Reason for rejection stated in Form GST SPL 07
11409 of 2026 M/s. Sri Renuka Impex The Deputy Commercial Tax Officer 31.03.2025 19.06.2025 Not filed 08.09.2025 Per Para 4 of Circular No. 238/32/2024-GST, Section 128A does not extend to interest on delayed return filing or delayed reporting of supplies, as this relates to self-assessed liability recoverable under Section 75(12) of the CGST Act.
1311, 1317 & 1320 of 2026 Tvl. Goodwill Services The Assistant Commissioner (ST) Unclear (However, it is deducible from the date of SCN that the application was made within time.) 02.06.2025 Not filed 20.11.2025 The interest amount pertaining to the belated filing of GSTR-3B returns is not eligible for waiver under the scheme.
44260 & 44263 of 2025 M/s. Keen Erectors The Assistant Commissioner Unclear (However, it is deducible from the date of SCN that the application was made within time.) 14.05.2025 Not filed 11.10.2025 Interest levied for belated filing of GSTR-3B return cannot be waived.
6199 of 2026 Tvl. Classic Services The Assistant Commissioner (ST) 30.06.2025 12.09.2025 Not filed 07.11.2025 The waiver is sought for interest only. Hence, not eligible.
6246 of 2026 Tvl. Classic Services The Assistant Commissioner (ST) 02.06.2025 06.06.2025 Not filed 07.11.2025 The waiver is sought for interest only. Hence, not eligible.
6259 of 2026 Tvl. Classic Services The Assistant Commissioner (ST) 28.03.2025 02.06.2025 Not filed 15.11.2025 The interest amount pertaining to the belated filing of GSTR-3B returns is not eligible for waiver under the scheme.
6230 of 2026 Tvl. Classic Services State Tax Officer 11.03.2025 06.06.2025 Not filed 14.11.2025 Interest levied for belated payment of tax cannot be waived as per Circular No. 238/32/2024-GST.
44261 of 2026 Tvl. Chennai Spun Pipes Assistant Commissioner (ST) 07.03.2025 02.06.2025 25.06.2025 17.07.2025 Interest levied for belated filing of GSTR-3B return cannot be waived.
12838 of 2026 Tvl. R.K.E. Enterprises The State Tax Officer (ST) 02.04.2025 13.05.2025 Not filed 06.10.2025 As the demand pertains to self-assessed tax under Section 75(12), the taxpayer is not eligible for waiver of interest/penalty under Section 128A.
38101 & 38105 of 2025 Tvl. SKM Industries The State Tax Officer 05.03.2025 05.06.2025 20.06.2025 05.08.2025 Interest levied for belated filing of GSTR-3B return and belated payment of tax cannot be waived.
26587 of 2026 Oviya Construction Deputy Commercial Tax Officer 24.06.2025 13.09.2025 Not filed 31.10.2025 As per Circular No. 238/32/2024-GST dated 15.10.2024, the benefit of waiver of interest and penalty shall not be applicable in cases where the interest has been demanded on account of delayed filing of returns, or delayed reporting of any supply in the return, as such interest is related to demand of interest on self-assessed liability and does not pertain to any demand of tax dues and is directly recoverable under Section 75(12).
26393 of 2026 ABC Ceramic Services The Assistant Commissioner 28.03.2025 04.09.2025 Not filed 30.09.2025 Ineligible for the waiver as the waiver was sought for a defect pertaining to GSTR-1 vs GSTR-3B.

 

40. A second category, which is closely related to the first category, consists of cases wherein the waiver applications were initially allowed by issuing an order in Form GST SPL – 05. Subsequently, an order declaring the earlier order to be void was issued. These orders are also invalid for reasons discussed earlier and are liable to be set aside. The particulars of these cases are set out below:
W.P. No. Petitioner Respondent / 1st Respondent Application Date (Form GST SPL 02) Date of SCN (Form GST SPL 03) Reply Form (GST SPL 04) Form GST SPL 05 Void Order (Impugned Order) Reason for Rejection Stated in Void Order
44253 of 2026 Tvl. Chennai Spun Pipes Assistant Commissioner (ST) 07.03.2025 06.05.2025 08.05.2025 13.05.2025 27.10.2025 Waiver shall not be applicable in cases where interest has been demanded on account of delayed filing of returns/reporting.
7928 of 2026 Tvl. Senthil Security Solutions Assistant Commissioner (ST) 12.06.2025 27.06.2025 28.06.2025 11.07.2025 17.12.2025 Ineligible for the waiver as per Circular 238/32/2024, as the waiver was sought for a defect pertaining to GSTR-7 vs GSTR-3B.
23886 of 2026 Greenland Associates State Tax Officer 31.03.2025 30.07.2025 04.09.2025 30.09.2025 17.12.2025 The taxpayer is not eligible for waiver as per Serial Number 4 of Circular No. 238/32/2024-GST dated 15.10.2024.
6028 of 2026 R. Venkataramanan State Tax Officer 28.06.2025 – – 01.11.2025 05.11.2025 Waiver order was generated due to a technical glitch in the GST portal.

 

41. A third category consists of cases where the application for waiver was filed belatedly or the payment was made belatedly. Since both these requirements are essential, these rejections are in order and no interference is warranted. The particulars of said cases are set out below:
Cases where the application for waiver was filed belatedly
W.P. No. Petitioner Respondent/1st Respondent Date of Application (Form GST SPL 02) Date of Rejection (Form GST SPL 07) (Impugned Order)
9766 of 2026 Menaka State Tax Officer 23.07.2025 23.09.2025
21378 of 2026 Incompressible Fluid Control System The Assistant Commissioner 17.09.2025 26.09.2025
16441 of 2026 M/s KGK Industries Deputy Commercial Tax Officer 24.12.2025 29.01.2026
22085 & 22087 of 2026 Tvl. Conscient Global Solutions Private Limited Assistant Commissioner (ST) (FAC) 15.04.2026 11.05.2026

 

Belated Payment
W.P. No. Petitioner Respondent / 1st Respondent Date of Application (Form GST SPL 02) Date of SCN (Form GST SPL 03) Reply (Form GST SPL 04) Date of Rejection (Form GST SPL 07) Reason for Rejection (stated in order dated 10.01.2026)
22688 of 2026 Sharmila Sundar Deputy Commercial Tax Officer 29.06.2025 02.07.2025 09.07.2025 10.01.2026
• i) The payment was actually made only on 30.06.2025.
• ii)The taxpayer has not withdrawn the appeal within the due date of payment.
(The appeal was not withdrawn and the final order was passed in the appeal on 23.06.2025, modifying the original order)

 

42. In W.P.No.11327 of 2026, the petitioner asserts that he was unaware of the order under Section 73 until the attachment order was issued. This is a case wherein no application for waiver has been filed as on date. In W.P.No.38025 of 2025, after filing a waiver application belatedly on 01.08.2025, the petitioner has requested for a Mandamus to direct the consideration thereof. Based on conclusions drawn earlier, these writ petitions are liable to be dismissed.
43. In conclusion, these writ petitions are disposed of on the following terms:
(a) W.P.Nos. 11409 of 2026, 1311 of 2026, 1317 of 2026, 1320 of 2026, 44260 of 2026, 44263 of 2025, 6199 of 2026, 6246 of 2026, 6259 of 2026, 6230 of 2026, 44261 of 2026, 12838 of 2026, 38101 of 2025, 38105 of 2025, 26587 of 2026, 26393 of 2026, 44253 of 2026, 7928 of 2026, 23886 of 2026 & 6028 of 2026 are allowed by setting aside the respective order of rejection of the waiver application or the void order, as the case may be, and holding that the respective petitioner is entitled to a waiver in terms of Section 128A. Where applicable, any consequential orders issued pursuant to orders declaring the approval order in Form GST SPL – 05 to be void are set aside.
(b) W.P. Nos. 9766 of 2026, 21378 of 2026, 16441 of 2026, 22085 of 2026, 22087 of 2026 and 22688 of 2026 are dismissed.
(c) W.P. No.38025 of 2025 is dismissed.
(d) W.P.No.11327 of 2026 is also dismissed.
(e) Consequently, connected miscellaneous petitions are closed. No costs.”
7. In view of the above, the impugned order is quashed and the case is remitted back to the respondents to pass a fresh order in accordance with law.
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