2026 (9) TMI 330

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.... order dated 29.09.2025 passed by the first appellate authority in the appeal filed under Section 107 of the CGST Act, 2017. [2]. Facts of the case, in brief, are as under : The appellant-taxpayer is engaged in providing services in the nature of IT Consultation and Support under GSTIN 19AAHCT127A1ZM and for this purpose the taxpayer has set up an office at 86A, Hautstreet, Topsia Road, Kolkata-700046, West Bengal. A demand notice dated 21.03.2024 was served on the taxpayer by the revenue enforceable under Section 73 of the CGST Act, 2017 and the corresponding provision of West Bengal Goods and Services Tax Act, 2017 (in short WBGST Act, 2017). It was alleged that the taxpayer availed excess ITC under CGST and SGST and he was li....

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.... of the adjudicating authority and vide order dated 30.09.2025, the first appellate authority has held as under : "Interest in dispute As per the provisions of section 50, every person who is liable to pay tax in accordance with the provisions of this Act or rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen percent, as may be notified by the Government on the recommendations of the council. So Interest liability arises naturally with the non-payment of tax within the prescribed period. Such additional liability h....

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....y him along with applicable interest before issuance of the demand-cum-show cause notice which is evident from the self-assessment made by the taxpayer in GSTR3B filed for the month of December, 2020. ii) The first appellate authority did not record any reason for arriving at the decision and as such the impugned order passed by the first appellate authority is liable to be set aside. iii) The first appellate authority has committed gross error in attributing penalty to the taxpayer without taking into consideration the fact that the taxpayer reversed the entire amount of ITC along with applicable interest much before issuance of demand notice. iv) There is no prohibition under the law for the taxpayer to reverse ....