"DENIAL OF ITC CREDIT DUE TO RETROSPECTIVE CANCELLATION OF GST REGISTRATION OF SUPPLIER"

"DENIAL OF ITC CREDIT DUE TO RETROSPECTIVE CANCELLATION OF GST REGISTRATION OF SUPPLIER"

If the GST department denies you ITC based on the retrospective cancellation of your supplier's GST registration, consider drafting your response using these case laws

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1. Madras High Court

1.1 Engineering Tools Corporation (2024)

Assessment order quashed as input tax credit reversed due to canceled supplier registration.

1.2 TVL. Cleon Optobiz Pvt. Ltd. (2024)

Order reversing ITC due to the supplier's canceled registration. All relevant materials to establish that purchases were genuine but same was not considered by the department. The order should be set aside for reconsideration.

1.3 Infiniti Wholesale Ltd. (2014)

Where assessee purchased goods after payment of input tax and availed input tax credit on such purchases, input tax credit could not have been reversed on grounds that selling dealers had not filed returns or not paid taxes or they were unregistered dealers or their registrations were retrospectively cancelled.

1.4 Jinsasan Distributors (2012)

Input tax credit, once validly taken, cannot be disallowed on the ground of cancellation of registration of selling dealer with retrospective effect.

2. Calcutta High Court

2.1 Gargo Traders (2023)

ITC claim rejected due to supplier's registration cancellation without considering whether documents relied on by petitioner was proper or not; Authority should consider petitioner's grievance afresh.

2.2 Sanchita Kundu (2022)

Petitioner’s entitlement to benefit of ITC should be decided by considering documents relied on to prove that all purchases and transactions in question were genuine and transactions in question were made before cancellation of registration of suppliers.

2.3 LGW Industries (2021)

Where input tax credit was denied on ground that suppliers were non-existent but petitioners argued that transactions were genuine, Authorities should consider petitioner's entitlement to ITC afresh.

3. Madhya Pradesh High Court

3.1 Goyal Sanitary Store (2023)

Where no express/physical was there on record showing cancellation of registration of any of dealers/suppliers in question retrospectively, particularly for relevant assessment year, impugned show cause notice issued to assessee denying input tax credit on ground that registration of dealers from whom assessee had made purchases was canceled retrospectively was to be quashed.

Note: This case is on procedural deficiencies in Notice.

I hope you will find this research useful.

Thanks

Abhishek Raja Ram

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