Section 73 vs 74(5)

DGGI Department of GST has conducted search procedure on one of my client, under sub section (2) of section 67 of the act,
Client has not paid GST for 7 months, but collected gst on sales.
now after search procedure , my client has paid all gst dues with late fees.
now DGGI has oraly instructed us to pay panelty u/s 74(5) as party has made suppression , fraud intention, but my view is client has not did any fraud, and he is fall under section 73 to pay panelty. please suggest....