GST Demand Quashed where ITC reversed voluntarily

The Orissa High Court has set aside GST demand, interest and penalty proceedings initiated under Section 74 of the CGST Act, holding that where input tax credit (ITC) was voluntarily reversed and the Electronic Credit Ledger maintained sufficient balance, interest under Section 50 and penalty under Section 74 could not be sustained merely on allegations of wrongful availment. 

The Court also emphasized adherence to procedural safeguards and principles of natural justice.