The Punjab & Haryana High Court has dismissed a writ petition challenging the denial of waiver of interest under Section 128A of the CGST Act on delayed deposit of self-assessed tax, holding that the scheme contemplates waiver of interest only in cases where proceedings have been initiated under Section 73, and that disputed tax and self-assessed tax are two separate and distinct categories bearing a valid classification under Article 14. The ruling by Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor in CWP 15868/2026 (M/s Dhull Earth Movers Co., decided 09.09.2026) relies on the CBIC Circular dated 15.10.2024 (Sr. No. 4) and Section 75(12) of the Act.
The court held that the Circular explicitly clarifies that the benefit of waiver of interest and penalty under Section 128A is not applicable where interest has been demanded on account of delayed filing of returns or delayed reporting of supply, as such interest relates to demand on self-assessed liability directly recoverable under Section 75(12). The petitioner had been called upon to pay interest under Section 50 on admitted tax deposited belatedly, with no Section 73 proceedings initiated. The distinction drawn by the authorities has a clear nexus with the object sought to be achieved: self-assessed liability is undisputed and interest accrues automatically, while Section 73 proceedings concern disputed liability.
- 2026-juristway.com-2680-HC(Punjab & Haryana)-GST | High Court of Punjab & Haryana | CWP 15868/2026 | 09.09.2026