Incorrectly claimed ITC but no fraud proved, token penalty levied by High Court
The Hon’ble Madras HC in the case of M/s. Greenstar Fertilizers Limited have levied token penalty of Rs.10,000 in case where ITC was wrongfully only availed and fraud as per section 74 was not proven.
The ITC here was relating to the transitioned credit which was never utilized by the Assessee.
This is a welcome judgement in times where most of the proceedings relating to ITC availment are being initiated under section 74 where there is a highest penalty upto 100% of tax amount. Therefore, this judgement shall be helpful in all those cases.
The Copy Of the Order as Under:
