Atanu Mondal Vs D. R. Steel Construction Co. Pvt. Ltd. ( Kolkata GSTAT)
Summary: The dispute before the Goods and Services Tax Appellate Tribunal, Kolkata Bench concerned excess Input Tax Credit (ITC) allegedly availed by M/s D.R. Steel Construction Co. Pvt. Ltd. for financial years 2018-19, 2019-20 and 2020-21. The Revenue’s show cause-cum-demand notice dated 29.12.2023 proceeded on a comparison of GSTR-3B with auto-generated GSTR-2A/2B and quantified the excess ITC at Rs.53,95,795/-. The Revenue sought recovery with applicable interest and penalty under Section 73 and related provisions, while the notice referred to Rule 142 and Rule 36.
The taxpayer maintained that the entire excess ITC had already been voluntarily reversed, supported by DRC-03, reconciliation statements, invoices and returns. The adjudicating authority nevertheless confirmed the original demand, appropriated Rs.13,03,063/- already paid, appropriated interest of Rs.27,405/- and imposed penalty of Rs.4,29,164/-. The first appellate authority examined the year-wise reconciliation and documents and concluded that the excess ITC had already been reversed except for Rs.2,08,058.90, which it directed the taxpayer to pay with interest and penalty.
Before the Tribunal, the Revenue challenged the finding that the earlier DRC-03 reversals corresponded to the disputed liability, principally relying on the absence of reasons in column 8 of DRC-03 and raising the issue of unpaid interest and penalty. The taxpayer relied on the DRC-03 entries, invoices, reconciliation statement and the Revenue’s acknowledgement in DRC-04.
