Case Title: M/s Alblanc Private Limited v. Assistant Commissioner of Central Tax
Court: High Court of Karnataka, Bengaluru
Petition No.: Writ Petition No. 12074 of 2025 (T-RES)
Category: GST – Amnesty Scheme / Wrong invocation of Section 74 instead of 73
Date of Judgment: 28 April 2025
Relevant Sections: Sections 73, 74, and 128A of the CGST Act, 2017
Facts (Paras 1–5):
M/s Alblanc Private Limited, Bengaluru, engaged in a joint development project, was issued a show cause notice and subsequent order-in-original dated 27.03.2025 under Section 74 of the CGST Act by the Assistant Commissioner, South Division, Bengaluru. The petitioner contended that identical proceedings were initiated against its director, Shri S. Lakshminarayan, and co-owner, Shri S. Sharadaprasad, under similar facts and that the High Court in M/s Sree Balaji Packaging Industry v. Union of India (WP No. 6425/2025 dated 28.03.2025) had directed such matters to be treated under Section 73, not Section 74, thereby allowing access to the GST Amnesty Scheme under Section 128A. The petitioner prayed for similar treatment and setting aside of the order to enable availing the scheme benefits.
Questions before the Court:
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Whether the proceedings initiated under Section 74 of the CGST Act should be treated as proceedings under Section 73 in light of the facts and prior judicial precedent.
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Whether the petitioner is entitled to avail the benefit of the Amnesty Scheme introduced under Section 128A of the CGST Act through Finance (No. 2) Act, 2024.
Observations (Paras 5–6):
Justice S.R. Krishna Kumar noted that the petitioner’s case was identical to Sree Balaji Packaging Industry v. Union of India, where the Court had held that treating such proceedings under Section 73 instead of Section 74 was appropriate to facilitate the benefit of the Amnesty Scheme. The Court observed that both the petitioner and its director were part of the same joint development arrangement, and uniform treatment was warranted. Therefore, the impugned order-in-original could not stand.
Judgment (Para 7):
The High Court allowed the writ petition and passed the following directions:
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The impugned Order-in-Original and summary orders dated 27.03.2025 were set aside.
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The matter was remanded to the Assistant Commissioner for fresh reconsideration under Section 73 of the CGST Act instead of Section 74.
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The petitioner was directed to appear before the authority on 03.06.2025, and the authority was to pass orders within two weeks thereafter under Section 73(9).
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The petitioner was allowed to file an application to avail the benefit of the Amnesty Scheme under Section 128A, which the authority was directed to consider in accordance with law.
Summary of Cited Case:
| Case Name | Court & Citation | Issue | Verdict |
|---|---|---|---|
| M/s Sree Balaji Packaging Industry v. Union of India & Ors. (WP No. 6425/2025, decided on 28.03.2025) | Karnataka High Court | Whether proceedings wrongly initiated under Section 74 could be treated under Section 73 to enable availment of the Amnesty Scheme | The Court allowed the petition, set aside the Section 74 order, and remanded the matter for fresh consideration under Section 73, granting eligibility for Amnesty Scheme under Section 128A. |
Between Fine Lines:
This judgment underscores that where there is no allegation of fraud, suppression, or wilful misstatement, proceedings under Section 74 of the CGST Act can be reclassified as those under Section 73. Doing so enables taxpayers to access the benefits of the GST Amnesty Scheme under Section 128A, ensuring fairness and parity in tax adjudication. It provides a significant relief path for assessees facing excessive penalty and interest due to wrong invocation of Section 74.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
