ITC cannot be denied for the reason that the supplier registration has been cancelled with retrospective effect and on 07.07.2023 Even if the supplier is found fake or non-existent, ITC cannot be denied- Calcutta High Court
In the case of M/s Gargo Traders (“Assessee”) v/s JCCT (WPA 1009 of 2022) dated 12th June 2023, the Hon’ble Calcutta High Court, held that input tax credit claimed by the assessee can’t be rejected based on the inquiry by GST authorities which found that the supplier from whom the assessee claimed to have purchased the goods in question are all fake and non-existing. The registration of the supplier was cancelled by the authorities retrospectively. The Hon’ble HC after relying upon all the supportings and held that at the time of transaction, the supplier had valid GST registration,the goods have been transported to the premises of assessee and the assessee had paid to the supplier through banking mode.
The aforesaid judgement will give relief to the taxpayers on similar issues where input tax credit has been disallowed due to the fake invoicing or fraudulent transactions by the supplier.
The copy of the order is as under:
