Direct GST Interest Recovery from Bank Quashed for Lack of Adjudication – ITC Misuse Case  

Sona Enterprises Vs Assistant Commissioner of Central Tax (Andhra Pradesh High Court)

The petitioner, a dealer in iron and steel scrap, purchases scrap from Indian Railways and is liable to pay Goods and Services Tax under the reverse charge mechanism (RCM). Under the GST Act, such RCM tax must be paid in cash and cannot be discharged by adjusting available input tax credit (ITC). The petitioner filed its GSTR-3B returns for the period July 2017 to March 2021.

On 14.03.2022, the tax authorities issued a notice stating that the petitioner had availed ITC of ₹43,57,395 duri

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