GSTAT Remands Verification on transitional ITC and Rejects Section 74 Allegations

Micro Labs had claimed transitional credit of ₹65.60 lakh against a closing CENVAT credit balance of ₹43.88 lakh, with the difference attributed to input service credit omitted from the earlier return due to a technical issue. GSTAT directed verification of the difference and a reasoned order within six months. Separately, it held that the Section 74 notice was unsustainable because wilful misstatement or suppression with intent to evade tax had not been established.