Background of the Case
The original Order-in-Original No. 50/GST/AC/DH/PW/25-26 dated March 24, 2026, was passed under Section 74 of the Central Goods and Services Tax Act, 2017. It had raised:
- Tax demand of ₹72,13,794/- towards alleged excess availment of Input Tax Credit (ITC) for FY 2019-20
- Applicable interest on the above amount
- Equivalent penalty of ₹72,13,794/-
The alleged violation was excess availment of Input Tax Credit during the financial year 2019-20.
Appellate Outcome
The Appellate Authority has:
- Allowed the appeal filed by the Company
- Set aside the Order-in-Original dated March 24, 2026
- Set aside the underlying Show Cause Notice
- Consequently set aside the entire GST demand of ₹72,13,794/-
- Set aside all applicable consequential interest and penalty imposed thereon
Financial Impact
As explicitly stated in the disclosure: "The entire GST demand of ₹72,13,794/-, along with consequential interest and penalty, has been set aside. Accordingly, there is no subsisting liability on the Company in respect of the said demand pursuant to the appellate order."
The financial impact is therefore quantified as a complete reversal of the previously potential liability totaling ₹72,13,794/- plus interest and penalty amounts.