Input tax credit demands cannot rest on unnotified supplier tax payment charges, with related interest and penalties also unsustainable.
Case-Laws
GST
Section 75(7) of the CGST Act confines confirmation of a demand to the grounds specified in the show cause notice. A charge concerning suppliers' non-filing of GSTR-3B returns under section 16(2)(aa), which was not in force during the relevant financial year, cannot be replaced at adjudication by a distinct charge of suppliers' non-payment of tax under section 16(2)(c). Omission of a statutory sub-clause is distinguishable where the relevant facts and charge were conveyed. An input tax credit demand confirmed on an unnotified ground is unsustainable, as are the associated interest and penalty.
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