GSTAT Upholds ₹7.69 Lakh Tax Demand Against Trader Over ITC From Non-Existent Supplier, Sets Aside Penalties For Redetermination

The appellant challenged an order concerning disallowance of input tax credit (ITC) under Section 74 of the CGST Act, 2017.

The First Appellate Authority upheld the disallowance, finding that the supplier was non-existing and that the appellant had not established the genuineness of the transactions.

The stated tax demand was ₹7,69,456

The Tribunal rejected the appeal against the order-in-appeal but partly upheld that order by setting aside the penalties imposed at both earlier stages and remanding the matter to the adjudicating authority to redetermine the penalty with regard to Section 75(13)

Section 75(13) of the CGST Act, 2017 provides that where a penalty is imposed under Section 73 or Section 74, no penalty may be imposed for the same act or omission under another provision of the Act.

The Tribunal directed the adjudicating authority to redetermine the penalty with this provision in view

The Tribunal left the order-in-appeal otherwise undisturbed, including its conclusion on the ITC disallowance, but set aside the penalties imposed at both earlier stages.

It remitted the penalty question to the adjudicating authority for redetermination under Section 75(13)

The supplied order summary does not explain the Tribunal’s assessment of the evidence or the detailed basis for its decision.

It set aside the penalties imposed in the original and appellate orders and remanded the matter to the adjudicating authority to redetermine the penalty in light of Section 75(13) of the CGST Act