The petitioner challenged the denial of ITC for FY 2017–18, arguing it was unfair since the supplier had gone through insolvency and the tax department didn’t claim their dues during that process. The Court accepted the case and directed the petitioner to deposit 10% of the disputed tax.

Grounds of Writ-The Petitioner, aggrieved by the impugned Order-in-Appeal (O-I-A), has filed the Writ Petition challenging the reversal of Input Tax Credit (ITC) for the Financial Year 2017-18, on the ground of non-payment of taxes by the Supplier. The Petitioner submits that the Supplier underwent insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC), and that a Resolution Plan was duly approved by the National Company Law Tribunal (NCLT). It is further contended that the tax
authorities failed to lodge any claim during the said insolvency process.

Order-The Hon'ble Court, having admitted the Writ Petition, directed the Respondents to furnish all relevant documents and details of actions undertaken during the insolvency proceedings. Simultaneously, the Court instructed the Petitioner to place on record the Resolution Plan approved by the National Company Law Tribunal (NCLT). Furthermore, the Court mandated the Petitioner to make an additional pre-deposit of 10% of the disputed tax amount within a period of four weeks.The Respondents were granted a period of six weeks to file an affidavit-in-opposition, with liberty to the Petitioner to file a rejoinder within four weeks thereafter.

GST Case Law  Lalwani Ferro Alloys Ltd Versus Assistant Commissioner

Citation-2025 TAXONATION 1791 (CALCUTTA) (Click here ot read full judgement)

Authors-Bhogavalli Mallikarjuna Gupta & Siddharth Surana

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