Summary
- The GST Appellate Tribunal in Thiruvananthapuram has ruled that the reversal of input tax credit after 180 days does not automatically invoke a penalty under Section 74 of the CGST Act.
- Pavithram Gold & Diamonds contested a penalty of Rs. 7,66,646, arguing that the Revenue failed to prove fraud or suppression of facts.
- The Tribunal found the show cause notice vague and lacking specific allegations, emphasizing that mere audit discovery does not imply willful suppression.
- This decision clarifies that penalties under Section 74 require clear evidence of intent to evade tax, impacting future GST compliance and enforcement actions.
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