Unpaid Supplier ITC Reversal Beyond 180 Days Does Not Automatically Invite Section 74 Penalty: GSTAT Thiruvananthapuram
The GST Appellate Tribunal (GSTAT), Thiruvananthapuram, heard an appeal by Pavithram Gold & Diamonds against Order-in-Appeal No.TVM-GST-000-APP-224-2023-JC- dated 24/8/2023 of the Joint Commissioner (Appeals), Kochi. The order was pronounced in open court on 8-10-2026. The case is Pavithram Gold & Diamonds Vs Commissioner of CGST & CE.
Facts as Recorded
- The appellant is a partnership firm in the retail sale of precious metal articles such as gold, silver and diamonds (Chapter 71).
- The Audit Group of the Audit Commissionerate, Kochi, examined records for 01/2019 to 03/2021 under Section 65 of the CGST Act 2017 and observed non-payment of value and tax to suppliers within the stipulated period, with GST short-paid to the extent of Rs.7,66,446.
- Order in Original No 04/2022-23 dated 15/2/2023 of the Superintendent, CGST Adoor Range confirmed the demand under section 74(1), demanded interest under section 50(1), and imposed a penalty of Rs 766646 under section 74(1). The first appellate authority rejected the appeal.