GSTAT says Third-Party Supplier Default Cannot Become Suppression

I-NXT had availed excess ITC arising from a mismatch between GSTR-3B and GSTR-2A and paid the entire tax with interest during departmental verification, before the SCN. GSTAT held that the mismatch did not establish suppression or intent to evade, particularly where the underlying supplier transactions were not disputed, and set aside the Section 74 penalty.