Purchasers ITC cannot be denied just because suppliers have not paid the tax – SLP filed in the case of Suncraft Energy Pvt. Ltd dismissed by the Supreme Court
The Supreme Court of India in the case of Suncraft Energy Pvt. Ltd. has dismissed the department’s SLP against the Calcutta HC judgment
The Supreme Court just tossed out the tax dept. appeal against the Calcutta High Court’s ruling on Suncraft Energy Pvt. Ltd. This crucial decision ensures that if a supplier hasn’t paid tax, it won’t automatically block the purchasing dealer’s Input Tax Credit unless exceptional circumstances occur—like the supplier disappearing or making tax collection impossible.
This game-changing ruling means the tax dept. can’t deny ITC to buyers without valid reasons. We’re still waiting for the official judgment copy, but this win is a huge boost for honest taxpayers.
With the SLP dismissed, the Calcutta High Court’s decision gets a thumbs-up, signalling a major win for taxpayer rights!
The copy of the order is as under: