Grounds of Writ-The Petitioner, aggrieved by the impugned order denying input tax credit (ITC) on the ground that the supplier failed to deposit the corresponding tax amount, has filed the present Writ Petition. The Petitioner contended that valid tax invoices were received from the supplier and that payments were duly made through RTGS. However, the authorities are now demanding reversal of ITC along with interest and penalty under Section 16(2)(c) of the CGST Act. The Petitioner argued that the proceedings should instead be initiated against non-compliant supplier, rather than penalizing the bona fide recipient.
Order-The Court, ruling in favour of the Petitioner, has quashed the impugned order, holding that the purchasing dealer should not be penalized for the default of the selling dealer. The Court observed that the purchasing dealer cannot be compelled to ensure that the selling dealer files returns within the stipulated time or deposits the tax collected. It further held that the purchasing dealer cannot be left at the mercy of the non-compliant seller.Accordingly, the matter has been remanded to the Respondent authorities for reconsideration, with a direction to pass a reasoned and speaking order within two months from the date of production of the certified copy of this order.
GST Case Law RT Infotech Versus Additional Commissioner
Citation-2025 TAXONATION 1284 (ALLAHABAD)
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