https://www.taxtmi.com/caselaws?id=754060 The Madras HC set aside penalties imposed under Sections 74(1) and 74(5) of CGST Act, 2017 for wrongly availed Input Tax Credit that was not utilized. The court held that penalties under these sections apply only when ITC is both wrongly availed and utilized for discharging tax liability. Following precedent in M/S. AATHI HOTEL case, the court ruled that proper penalty should have been under Section 122 of TNGST Act. Considering the petitioner reversed the amount after show cause notice and ITC was not utilized, the court imposed a token penalty of Rs. 10,000 instead. Petition allowed. en-us Tue, 11 Jun 2024 00:00:00 +0530 Sat, 15 Jun 2024 19:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754060 The Madras HC set aside penalties imposed under Sections 74(1) and 74(5) of CGST Act, 2017 for wrongly availed Input Tax Credit that was not utilized. The court held that penalties under these sections apply only when ITC is both wrongly availed and utilized for discharging tax liability. Following precedent in M/S. AATHI HOTEL case, the court ruled that proper penalty should have been under Section 122 of TNGST Act. Considering the petitioner reversed the amount after show cause notice and ITC was not utilized, the court imposed a token penalty of Rs. 10,000 instead. Petition allowed. Case-Laws GST Tue, 11 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754060