SLP Dismissed Against HC Order Where Demand of ITC Reversal Was Set Aside Holding that Investigation Against Supplier is a Pre-requisite
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 18 December, 2023
Latest from Taxmann
Case Details: Assistant Commissioner of State Tax v. Suncraft Energy P. Ltd - [2023] 157 taxmann.com 352 (SC)
Judiciary and Counsel Details
-
- Mrs. B. V. Nagarathna & Ujjal Bhuyan, JJ.
- Maninder Acharya, Sr. Adv., Ms Madhumita Bhattacharjee, AOR, Ms Urmila Kar Purkayastha, Adv., Ms Niharika Singh, Adv., Akash Mohan Srivastav, Adv., Ms Srija Choudhury, Adv. for the Petitioner.
- Ankit Kanodia, Adv., Ravi Bharuka, AOR, Ms Megha Agarwal, Adv. for the Respondent.
Facts of the Case
The taxpayer was asked to reverse the Input Tax Credit (‘ITC’) on the supplies on which the tax was alleged to be not paid by the supplier. The department contended that the ITC was not getting reflected in Form GSTR-2A of the taxpayer, hence, the condition of Section 16(2) of the CGST Act, 2017 was not met and the ITC was required to be reversed. Calcutta High Court noted that the taxpayer has produced the tax invoice, the bank statement proving that they have made payment in respect of the supplies and tax to the seller thereby demonstrating that all other conditions of 16 of the CGST Act are satisfied.
Further, no action was taken by the department against the supplier. It noted that where a tax is not paid by the supplier, an action is required to be taken against him first. Reversal of ITC by the recipient should be the last resort in extreme cases. Hence, the High Court set aside the demand order.
Supreme Court Held
Hon’ble Supreme Court held that having regard to the facts and circumstances of the case and that the amount of tax involved is on the lower side, it was inclined not to interfere in the matter and upheld the decision of the High Court.
List of Cases Reviewed
-
- Suncraft Energy (P.) Ltd. v. Assistant Commissioner, State Tax [2023] 153 taxmann.com 81 (Cal.) (para 4) SLP dismissed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
