GST Tribunal Deletes Penalty After Pre-Notice ITC Reversal
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Zeneeda Information Technology Private Ltd. v. Office of the Commissioner of State Tax (WB), Park Street Charge, Circle-Kolkata South
Source & Citation
CaseZeneeda Information Technology Private Ltd. v. Office of the Commissioner of State Tax (WB), Park Street Charge, Circle-Kolkata South
Publication statusTo be published soon
The taxpayer, an IT services provider, challenged a GST demand based on alleged excess input tax credit. It said the excess credit was reversed with applicable interest before the demand-cum-show-cause notice was issued, so no penalty could follow under section 73. The adjudicating authority had confirmed the demand, and the first appellate authority refused to interfere.
The Tribunal accepted the taxpayer’s position that interest follows delayed tax payment, but treated the pre-notice reversal as material to the penalty question. It set aside the penalty component while leaving the substantive tax and interest position undisturbed. The appeal was partly allowed accordingly, with relief confined to deletion of the penalty.