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CA Final · Indirect Tax Laws · Demands and Recovery

Three taxpayers have dues for periods between 1 July 2017 and 31 March 2020 and are considering the section 128A waiver. P owes tax on an order and has an appeal pending before the Appellate Tribunal, not withdrawn by the notified date. Q owes an amount arising from an erroneous refund. R has an order under section 73(9) with no appeal order, and will pay full tax by the notified date. Who can avail the waiver?

Only R can avail the waiver. P is excluded because an appeal before the Appellate Tribunal is pending and not withdrawn by the notified date. Q is excluded because amounts arising from erroneous refund are outside the scheme. R holds a section 73(9) order and pays full tax, so qualifies.

  1. AP and R only
  2. BQ and R only
  3. CP, Q and R
  4. DR onlyCorrect

Explanation

Section 128A(3) excludes cases where an appeal or writ petition is pending and not withdrawn by the notified date, so P is excluded. Section 128A(2) excludes amounts payable on account of erroneous refund, so Q is excluded. R has a section 73(9) order, covered by clause (b), and pays full tax, so R qualifies.

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