GSTAT EKM says Section 16(2)(aa) Cannot Sustain ITC Demand for FY 2018-19

GSTAT Ernakulam set aside an ITC demand of ₹3,06,504 relating to FY 2018-19. The show-cause notice alleged non-compliance with Section 16(2)(aa), which was not in force during the relevant period. The adjudicating authority subsequently confirmed the demand under Section 16(2)(c), without putting that distinct allegation to the taxpayer. Holding that this change violated Section 75(7), the Tribunal set aside the corresponding tax, interest and penalty.