Compliance with notification conditions for availing input tax credit is essential; failure leads to denial of benefits and imposition of penalties.

ORDER :

C. SARAVANAN, J.

The petitioner is before this Court against the impugned Order in Original No.15/2025-GST-ADC dated 08.01.2025 passed by the respondent, whereby, the proposal in Show Cause Notice No.115/2024-GST(ADC) dated 25.07.2024 has been confirmed against the petitioner for the tax period 2017-2018 to 2022-2023. The Operative portion of the impugned order reads as under:-

“ORDER

i. I confirm the demand of Rs.22,65,05,082/- (IGST Rs.22,65,05,082/-) (Rupees Twenty-two Crore sixty-five lakh five thousand and eighty two only) as discussed in Para 7 above in terms of Section 74(9) of the CGST Act, 2017 read with similar provision of the TNGST Act, 2017 made applicable to IGST vide Section 20 f the IGST Act, 2017.

ii. I confirm the demand of appropriate interest on the demand confirmed under Sl.No.(i) above and order for recovery of the same in terms of Section 50 of the CGST Act, 2017, read with similar provision of the TNGST Act, 2017 and made applicable to IGST vide Section 20 of the IGST Act, 2017.

iii. I impose penalty on the taxpayer for an amount of Rs.22,65,05,082/- (Rupees Twenty-two Crore sixty-five lakh five thousand and eighty two only) on the demand confirmed under Sl.No.(i) above in terms of Section 74(9) of the CGST Act, 2017, r/w Section 122(2)(b) of the CGST Act, 2017 along with similar provision of the TNGST Act, 2017 and made applicable to IGST vide Section 20 of the IGST Act, 2017.

iv. I confirm the demand of Rs.6,05,40,252/- (IGST Rs.6,05,40,252/-) (Rupees Six Crore five lakh forty thousand two hundred and fifty two only) as discussed in Para 7 above in terms of Section 74(9) of the CGST Act, 2017 r/w similar provision of the TNGST Act, 2017 made applicable to IGST vide Section 20 of the IGST Act, 2017.

v. I confirm the demand of appropriate interest on the demand confirmed under Sl.No.(iv) above and order for recovery of the same in terms of Section 50 of the CGST Act, 2017 read with similar provision of the TNGST Act, 2017 and made applicable to IGST vide Section 20 of the IGST Act, 2017.

vi. I impose penalty on the taxpayer for an amount of Rs.6,05,40,252/-(Rupees Six Crore five lakh forty thousand two hundred and fifty two only) on the demand confirmed under Sl.No.(iv) above in terms of Section 74(9) of the CGST Act, 2017 r/w Section 122(2)(b) of the CGST Act, 2017 along with similar provision of the TNGST Act, 2017 and made applicable to IGST vide Section 20 of the IGST Act, 2017.

2. The breakdown of the above demand confirmed by the impugned Order-in-Original is as under:-

3. A part of the demand covered by Clauses I, II and III is as under:

“i. I confirm the demand of Rs. 22,65,05,082/- (IGST Rs.22,65,05,082/-) (Rupees twenty-two crore sixty-five lakh five thousand and eighty-two only) as discussed in Para 7 above in terms of Section 74(9) of the CGST Act, 2017 read with similar provision of the TNGST Act, 2017 made applicable to IGST vide Section 20 of the IGST Act, 2017.

ii. I confirm the demand of appropriate interest on the demand confirmed under Sl. No. (i) above and order for recovery of the same in terms of Section 50 of the CGST Act, 2017 read with similar provision of the TNGST Act, 2017 and made applicable to IGST vide Section 20 of the IGST Act, 2017.

iii. I impose penalty on the taxpayer for an amount of Rs. 22,65,05,082/- (Rupees twenty-two crore sixty-five lakh five thousand and eighty-two only) on the demand confirmed under Sl. No. (i) above in terms of Section 74(9) of the CGST Act, 2017 read with read with Section 122(2)(b) of the CG