High Court: ITC Cannot be Denied for Retrospective Cancellation of Supplier’s GSTN

High Court: ITC Cannot be Denied for Retrospective Cancellation of Supplier’s GSTN

In one of the GST matters, the sole ground on which the input tax credit (ITC) claimed has been denied to the petitioner is that the supplier’s GST registration has been cancelled with retrospective effect.

There was no material on record indicating that either the Assessing Officer or the Appellate Authority had considered whether the transaction in question was genuine and a straightaway notice under Section 16(2) of the CGST Act had been issued.

Consider the genuineness of the transaction: High Court

The Honourable Court was of the view that before taking any action in the matter, considering the genuineness of the transaction, the same could have been determined only after examining all the relevant documents, which do not appear to have been done in the instant case.

Final Order

As a result, the matter is remanded back to the Adjudicating Authority, which shall decide the matter after examining all the relevant documents