AMNESTY SCHEME & RECOVERY PROCEEDINGS

[Sadanand Bulbule]

Dear experts

1] Section 128A of the CGST Act provides for waiver of 100% interest and penalty demanded in pursuance of order passed under Section 73[9] for the tax periods from 01/07/2017 to March 2020 subject to specified terms. This benefit comes into play from the effective date as notified by the Government/s.

2]. However whether authorities can initiate recovery proceedings in respect of basic tax amount adjudicated, since upper time limit to avail such benefit is March 31 2025? Will it not amount to trespassing the object and jurisdiction under Section 128A? if yes, why so much craze to defeat the law by the law enforcement authorities?

Please offer your esteemed comments.

[Sadanand Bulbule]

Dear all

Please refer the judgement dated 03/07/2024 of the Hon'ble Madras High Court rendered in the case of  Unitac Energy Solutions [India] Pvt Ltd Vs. Assistant Commissioner [ST] -2024 (7) TMI 738 - MADRAS HIGH COURT.

The Hon'ble High Court has directed the Respondent authority to follow the specific decision of 53rd GST Council followed by an insertion of new Section 128Aand till the date of notification, recovery proceedings be kept in abeyance.

So the authorities need not jump the gun. Otherwise it would have an abortive effect.

[KASTURI SETHI]

Sh. Sadanand Bulbule Ji,

Sir, At the last moment changes take place. Trade and Industry have raised voice to include so many other benefits in the Amnesty Scheme. Without issuance of Notification, NOTany action can be taken.

More concessions are expected at the time of issuance of the Notification in the interest of fair justice. It takes time to understand new laws. So many taxpayers committed mistakes and now these problems should be resolved by way of revised Amnesty Scheme. There are so many instances where Section 74 has been invoked where offence is of technical nature.

It is worth while to peruse the observations of Orissa High Court reported as 2022 (10) TMI 676 - ORISSA HIGH COURT

"Appellate Authority should have borne in mind predicament faced by taxpayers on introduction of new set of procedures by way of promulgation of GST enactments and time required to be taken to get acquainted".

[kailash chandra]

a recent Judgement of Hon’ble Calcutta High Court dated 20/08/2024 against Writ Petition No. 14984 of 2024 in the matter of M/s. Saptarshi & Anr. Vs. Deputy Commissioner of State Tax, Bureau of Investigation, South Bengal HQ & Ors. - 2024 (8) TMI 1196 - CALCUTTA HIGH COURT

Cover the situation, it confirm the object of law as notified under aforasid amentsty scheme, if tax paid, awaiting amensting scheme during intervening period.

[Shilpi Jain]

If one wants to adopt this amnesty scheme then one is required to pay the taxes by 31st Mar '25. No recovery from department.

You choose you pay.

AI Summary

Amnesty scheme waiver: recovery proceedings should be stayed until notification; taxpayers must pay by the deadline to avail. Section 128A provides an amnesty allowing waiver of interest and penalty for specified GST assessment periods, effective only from the implementing notification; authorities are urged to keep recovery proceedings in abeyance until notification to preserve the scheme's object, and taxpayers must comply with the scheme's payment conditions and deadlines to avail the waiver.