The Hon’ble Orissa High Court in the case of Manoja Kumar Nayak & Anr. v. Commissioner, GST & Central Excise & Ors. [W.P.(C) No. 12682 of 2025 & W.P.(C) No. 12686 of 2025, order dated April 08, 2026] held that raising demand of tax equivalent to input tax credit already voluntarily reversed prior to issuance of show cause notice amounts to double taxation and is without authority of law; further, no interest under Section 50 is payable where sufficient balance exists in the Electronic Credit Ledger, and penalty under Section 74 is unsustainable in absence of fraud or wilful misstatement.
