Incompressible Fluid Control System v. Assistant Commissioner
In favour of the assessee
The ruling in brief
Incompressible Fluid Control System filed before the Madras High Court; decision 28 July 2026. The assessee sought waiver of interest and penalty under Section 128A where show-cause proceedings under Section 73 arose from belated filing of GSTR-3B and self-assessed tax shortfalls. Revenue argued Section 75(12)’s non obstante clause permitted direct recovery under Section 79, excluding such cases from amnesty. The court held that once liability is determined under Section 73, Section 128A remains available; Section 75(12) does not oust the waiver scheme for those proceedings. Rules 164 and Section 168 supported procedure. Outcome: in favour of the assessee. Useful for mapping amnesty eligibility to the section under which demand is raised. Not legal advice. Belated GSTR-3B filers who face Section 73 notices may therefore explore 128A relief if other scheme conditions are satisfied.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.128A — Waiver of interest or penalty in specified circumstances.
- CGST S.73 — Determination of tax not paid or short paid (non-fraud cases).
- CGST S.75 — General provisions relating to determination of tax.
- CGST S.79 — Recovery of tax and other dues payable to Government.
- CGST S.161 — Rectification of errors apparent on the face of record.
- CGST Rules R.164 — Rule 164 of the Central Goods and Services Tax Rules, 2017.
- CGST S.168 — Power to issue instructions or directions by the Board.
Source documents
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