Waiver application under CGST Scheme cannot be rejected on a mistaken demand description; true tax, interest and penalty must govern.

Rejection of a waiver application under Section 128A of the CGST Act was unsustainable where the summary assessment proceedings wrongly described the demand as penalty alone instead of tax, interest and penalty. The original assessment order showed the correct components, and the clerical error in the summary record could be verified from the file itself. The authority was required to assess the demand on its true legal character and decide the waiver request independently on merits under the Scheme. The HC set aside the rejection, remanded the matter for fresh consideration, and directed that the demand be treated as tax, interest and penalty for Scheme purposes.

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Issues: Whether the rejection of the petitioner's application under Section 128A of the CGST Act, 2017 was sustainable when the summary assessment proceedings erroneously reflected the demand as penalty alone instead of tax, interest and penalty.

Analysis: The original assessment order disclosed components of tax, interest and penalty, and the error in the summary assessment proceedings could be identified from the record itself. A mistaken description in the summary proceedings could not be allowed to govern the consideration of the waiver application. The authority was required to examine the correctness of the demand and decide the application on its own merits under the Scheme.

Conclusion: The rejection of the waiver application was unsustainable. The matter was remanded to the first respondent for fresh consideration, and the demand was directed to be treated as tax, interest and penalty for the purpose of the Scheme.

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