High Court rules that ITC cannot be denied solely due to retrospective GSTN cancellation of the supplier without verifying the genuineness of the transaction.
CA Pratibha Goyal | Jun 19, 2025 |
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
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