Question ID :
44981
Demand Proposed under Section 73 and Rectification filed u/s 161 against Demand along with Reconcili
In one case of SGST department, Party had received a Show Cause Notice for Mismatch of ITC between GSTR-3B and GSTR-2B proposing Tax Demand for IGST Rs. 60,757.46; CGST Rs. 18,818.10 and SGST Rs. 18,818.10 Plus Interest and Penalty u/s 73 of GST Act. Party filed Submissions along with Reconciliation of ITC wherein Tax liability of IGST Rs.5,976.00 plus Interest Rs.4,208.00 was worked out and Party declared to deposit IGST Rs.5,976.00 plus Interest Rs.4,208.00. The case was discussed and acceptable to the DC. But the DC passed, by mistake, passed Order u/s 73 upholding Tax Demand for IGST Rs. 60,757.46; CGST Rs. 18,818.10 and SGST Rs. 18,818.10 Plus Interest and Penalty u/s 73 of GST Act. Then the Party after discussions with DC filed Rectification Application u/s 161 of the Act reproducing above Reconciliation and deposited Tax liability of IGST Rs.5,976.00 plus Interest Rs.4,208.00 as worked out in Reconciliation. In meantime, the Jurisdiction of Party was transferred to another Sector (as three sectors were reduced in Varanasi). Now the other Officer is ready to accept the Reconciliation and drop all other demands but is demanding to deposit Penalty of Rs.20,000/- in IGST. Is there Case Law / legal backing in favour of the Party so as to drop IGST Penalty of Rs.20,000/-.
posted by
Gaurav Kumar Baranwal
on
Apr 24 2026 12:00AM