The GSTAT, Kolkata Bench in the case of Commissioner, CGST & CX, Kolkata North Commissionerate v. M/s Power Tech Global Private Limited [Appeal Nos. APL/62/KLK/2026, APL/74/KLK/2026 and APL/75/KLK/2026 dated August 05, 2026] partially allowed the appeals filed by the Revenue and held that the benefit of exclusion of the value of Duty Credit Scrips from the aggregate value of exempt supplies, introduced by insertion of clause (d) in Explanation 1 to Rule 43 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) vide Notification No. 14/2022-Central Tax dated July 05, 2022, operates prospectively and cannot be applied retrospectively for the FY 2017-18 to FY 2019-20. However, since the Revenue failed to establish fraud, wilful misstatement or suppression of facts with intent to evade tax, the Tribunal held that the Show Cause Notice issued under Section 74(1) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) was not sustainable and, invoking Section 75(2) of the CGST Act, directed the proper officer to re-determine the tax liability deeming the notice to have been issued under Section 73 of the CGST Act, after granting an opportunity of hearing.
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