TaxTMI 
TaxTMI 
2026 (1) TMI 1610
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.... of the petitioners and for restraining the respondent authorities from adjudicating the demand in the ongoing proceedings and further to return all documents, including inventories and materials seized unlawfully and to quash the proceedings under INS-01 issued on 21.05.2025 and 28.05.2025. The petitioners have also prayed for interim orders. 3. Pleadings are exchanged. The respondent department duly contested the case of the petitioner. The petitioners have also filed the rejoinder affidavit reiterating their grievances. 4. During the course of the hearing, the petitioners have placed before the court the provisional attachment order by the concerned authorities for attachment of the bank account maintained by the petitioner in the ....
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....nt, as the case may be. In view of the findings that the Input Tax Credit was availed by fraud, willful misstatement and suppression of facts with intent to evade tax, I hereby impose a penalty equivalent to the tax amount i.e. Rs. 4,94,39,500/-, under Section 74 of the CGST/SGST Act, 2017, read with relevant provisions under the IGST Act, 2017. Year-wise demands of Taxes, interest and penalty are as follows: Periods Particulars CGST SGST IGST Total Rs. 2021-2022 Taxes 35,860 35,860 1,15,49,308 1,16,21,028 2021-2022 Interest 27,092 27,092 87,25,581 87,79,765 2021-2022 Penalty 35,860 35,860 1,15,49,308 1,16,21,028 Total Rs 98,812 98,812 ....
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....er conferred under Section 74A of the CGST/SGST Act, 2017, I hereby pass the following order: I hereby confirm the demand of Input Tax Credit amounting to Rs. 2,39,22,484/- under the IGST Act, 2017, as detailed below, which has been wrongly and fraudulently availed by the taxpayer for the financial years 2024-2025 and 2025-2026, in contravention of the provisions of Section 16(2) of the CGST/SGST Act, 2017 read with relevant provisions under IGST Act, 2017 and other relevant provisions. I further confirm the demand of interest on the above wrongly availed Input Tax Credit under Section 50(3) of the CGST/SGST Act, 2017 read with relevant provisions under IGST Act, 2017, at the applicable rate, from the date of wrongful avai....
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....der Section 74A ibid along with interest in terms of Section 50ibid and reduced penalty within 60(sixty) days of the date of communication of this order." 6. The learned counsel for the petitioners submits that these orders are not yet challenged before the court. However, by virtue of the petition filed before the court, he had questioned the procedure adopted by the respondent authorities in conducting the search and seizure as also the process for attachment of freezing the bank account maintained by the petitioner. 7. The learned Standing counsel representing the SGST submits that he has filed a detailed affidavit opposing the contention raised by the petitioners. However, he does not have instructions as to the order stated to ha....