GST penalty under Section 74 remitted for fresh consideration after tax and interest were already paid.

After tax liability and interest had already been discharged, the Madras High Court limited reconsideration to the penalty imposed under the GST enactment's Section 74. The earlier appeal had been withdrawn on advice, and the petitioner did not seek refund of the tax paid. To balance revenue interests and the petitioner's position, the matter was remitted to the first respondent for fresh consideration confined to the penalty component alone.

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Issues: Whether the penalty component under Section 74 of the GST enactment required reconsideration after payment of tax and interest, in the context of the withdrawn earlier appeal and the subsequently time-barred fresh appeal.

Analysis: The tax liability and interest had already been discharged. The earlier appeal had been withdrawn on advice, and the petitioner did not press for refund of tax paid. To balance the interests of revenue and the petitioner, the matter was sent back for reconsideration limited to the penalty imposed under Section 74.

Conclusion: The penalty issue was remitted to the first respondent for fresh consideration, limited to the imposition of penalty under Section 74.

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