Rodman Technologies Pvt. Ltd. Vs Commissioner of Karnataka State GST (GSTAT Bengaluru)
Summary: The Goods and Services Tax Appellate Tribunal, Bengaluru Bench dismissed the appeal filed by Rodman Technologies Pvt Ltd and upheld the interest and penalty confirmed under Section 73(9) of the CGST/KGST Acts, 2017. The dispute concerned whether the appellant could obtain waiver of interest and penalty under Section 128A in respect of an excess Input Tax Credit demand that was reported in GSTR-3B for December 2020, although the appellant contended that the underlying debit notes related to FY 2018-19.
The appellant was engaged in trading in garments manufacturing and was registered under the KGST Act, 2017. On scrutiny of returns for 2020-21, the department compared ITC available in GSTR-2A with ITC claimed in GSTR-3B for December 2020 and identified excess ITC of Rs 68,573 as IGST, Rs 2,46,747 as CGST and Rs 2,46,747 as SGST. A notice under Section 61 in Form GST ASMT-10 was issued on 08.02.2024, followed by Form GST DRC-01A on 02.07.2024. Thereafter, a show cause notice in Form DRC-01 dated 15.11.2024 was issued under Section 73, proposing recovery of the excess ITC together with interest of Rs 3,23,753 under Section 50 and penalty of Rs 69,350. The disputed excess ITC of Rs 5,62,067 was paid through Form DRC-03 on 09.01.2025, while interest and penalty remained unpaid.
