No Interest on Reversed ITC If Credit Not Utilised: Orissa HC Clarifies Section 50

Manoja Kumar Nayak Vs Commissioner Goods and Services Tax and Central Excise (Orissa High Court) Wrong ITC, No Interest? Orissa High Court Clarifies the Law on Utilisation and Section 74 Misuse Summary: In Manoja Kumar Nayak vs Commissioner GST & Central Excise, the Orissa High Court quashed demand of tax, interest, and penalty where input tax credit (ITC) had already been voluntarily reversed before issuance of show cause notice. The Court held that invocation of Section 74 requires clear evidence of fraud, wilful misstatement, or suppression, which was absent as authorities relied solely...