Atanu Mondal Vs Jay Technical Services (GSTAT Kolkata)
GSTAT Kolkata Allows Consolidated Section 74 SCN for Multiple Financial Years; GSTAT Kolkata Upholds ₹43.44 Lakh Fraudulent ITC Demand Under Section 74 CGST Act; GSTAT Kolkata Upholds Reduced ITC Mismatch and RCM Demands Under Section 73; GSTAT Kolkata Partly Allows Revenue Appeal on Fake Invoice and RCM GST Demands
Summary: The Goods and Services Tax Appellate Tribunal, Kolkata Bench considered the Revenue’s appeal against the first appellate authority’s order concerning three demands raised against Jay Technical Services for multiple financial years from 2017-18 to 2023-24. The original show cause-cum-demand notice dated 08.01.2024 invoked Sections 73 and 74 of the CGST Act, 2017 and alleged excess ITC based on GSTR-3B/GSTR-2A differences, ITC based on invoices issued by non-existent suppliers, and short payment of tax under the reverse charge mechanism.
The first demand originally involved Rs.20,92,513/- of allegedly excess ITC. The adjudicating authority had reduced the demand to Rs.17,22,513/- after taking into account Rs.3,70,000/- already deposited. The first appellate authority, on comparison of GSTR-3B, GSTR-2A and DRC-03 records, further reduced the liability to Rs.1,93,812/- with applicable interest and penalty. The Tribunal upheld this finding, holding that the appellate authority was empowered under Section 75 to modify the amount of tax determined by the proper officer and that the Revenue’s jurisdictional objection had no merit. The discussion concerns Section 16, Rule 36 and Sections 73 and 75 of the CGST Act.
