IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.33058 of 2025 M/s. Simon India Ltd. …. Petitioner Mr. Jagabandhu Sahoo, Senior Advocate assisted by Ms. Kajal Sahoo, Advocate -versus-

Assistant Commissioner of CT & …. Opposite Parties GST, Jagatsinghpur and others Mr. Sunil Mishra, Standing Counsel for CT & GST Department CORAM:

THE HON’BLE THE CHIEF JUSTICE AND THE HON’BLE MR. JUSTICE MURAHARI SRI RAMAN

ORDER

Order No. 16.12.2025

04. 1. Heard Mr. Jagabandhu Sahoo, learned Senior appearing along with Ms. Kajal Sahoo, learned counsel for the petitioner and Mr. Sunil Mishra, learned Standing Counsel appearing for the CT & GST Department.

2. The Petitioner, a company registered under the Companies Act, 1956, on introduction of the Central Goods and Services Tax Act, 2017/the Odisha Goods and Services Tax Act, 2017 (collectively, “GST Act”), is allotted with GSTIN/ID:21AAECS5013J1ZQ. It undertook execution of works contracts being entrusted by M/s. OCL India Limited and M/s. Paradeep Phosphate Limited. The transactions were reflected in the returns filed under Section 39 of the GST Act.

2.1. The company was subjected to audit under Section 65 of the GST Act and was issued with a show-cause notice in Form GST DRC-01, dated 4^th February, 2023, contemplating adjudication under Section 73 of the GST Act, responding to which reply in Form GST DRC-06 was filed by the petitioner. However, a demand was raised under said section vide order dated 27^th December, 2023, which included taxes, interest and penalty pertaining to the tax periods from July, 2017 to March, 2018 under the GST Act as well as the Integrated Goods and Services Tax Act, 2017 (for short, “the IGST Act”).

2.2. The petitioner availed the remedy of appeal as provided under Section 107 of the GST Act by making deposits as required under sub-section (6) thereof. As the appeal was pending, the GST Council in its 53^rd meeting held on 22^nd June, 2024 recommended for granting scope for waving interest and penalties with respect to the demand raised under Section 73 of the GST Act pertaining to the financial years 2017-18, 2018-19 and 2019-20 on the condition that the assessee is required to deposit entire tax demanded by 31^st March, 2025. To give effect to such recommendation, Section 128A of the GST Act has been inserted by virtue of Act 15 of 2024 and the procedures for such purpose have been laid under Rule 164 of the GST Rules, 2017.

2.3. With a hope to get waiver of interest and penalty, the petitioner having sought for withdrawal of appeal, paid the tax as demanded vide order of adjudication dated 27^th December, 2023 by debiting the amount standing in the electronic cash ledger and the electronic credit ledger on 31^st January, 2025 and 12^th February, 2025 respectively, excluding 10% of the demanded tax as the company had already paid in order to comply with the condition laid under sub-section (4) of Section 107 of the GST Act on 20^th March, 2024.

2.4. The petitioner on 12^th February, 2025 filed an application in Form GST SPL-02 for seeking to waive interest and penalty in terms of Section 128A of the GST Act read with 164 of the GST Rules. However, the Assistant Commissioner of State Tax, CT & GST Circle, Jagatsinghpur-opposite party no.1 issued Form GST SPL-03, dated 9^th May, 2025 proposing to reject said application, in response to which the petitioner furnished reply in Form GST SPL- 04, dated 5^th June, 2025, wherein it was explained that the petitioner has made payment as required. However, an order has come to be passed on 2^nd September, 2025 in Form GST SPL-07 by the opposite party no.1 rejecting the application with the following observation(s):

“The taxpayer has replied in SPL-04- Reply to Notice issued under Rule 164(9) (Reference Number:ZD210625003468M, Date :05/06/2025) an has stated the following – “We had complied all the provision as per the waiver of interest and penalty scheme under section 128A of Odisha GST Act and Central GST Act and Rule 164 of Odisha GST Rules