2026-VIL-277-GSTAT-ERN
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SGST Tribunal

GST - Demand of tax and interest on ITC availed on invoices of suppliers who had not filed GSTR-3B, where the Revenue conceded the claim after verification of documents - Adjudicating Authority confirmed a demand of ineligible ITC with interest and penalty under Section 73(9), and the FAA granted partial relief and confirmed the balance demand - Appellant contended that the disputed IGST pertained to invoices reflected in GSTR-2A for FY 2017-18 but the goods were received and the credit availed in FY 2018-19 - On verification, the jurisdictional authorities confirmed that the invoices and the Chartered Accountant certificate supported the disputed ITC and that the amount paid exceeded the amount appropriated - Whether the demand of tax and interest confirmed by the FAA is sustainable - HELD - The Revenue itself conceded, on verification of documents, that the demand of IGST is not sustainable. The balance demand of CGST and SGST arose purely from incomplete appropriation of the amounts already paid, and the remaining amount is appropriated from the sum already paid. As no tax is due from the Appellant, the demand of interest is also not sustainable - The demand of tax and interest confirmed by the FAA is set aside and the appeal is allowed - Penalty under Section 73(9) of the CGST Act, 2017 where tax and interest were paid within thirty days of the notice under Section 73(8) - The Appellant contended that the tax and interest attributable to the demand were paid within thirty days of the notice, and the Revenue accepted that the penalties under CGST and SGST are not sustainable, while remaining silent on the penalty under IGST - Whether the penalty is sustainable - HELD - Under Section 73(8), no penalty is leviable where tax with interest is paid within the prescribed period. Accordingly, the penalties under CGST and SGST are not sustainable. On the same logic the penalty under IGST is also not sustainable - The penalties imposed are set aside.
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