Court:
Calcutta High Court
Brief:
The Hon’ble High Court disposed off the petition and gave the decision in favour of the petitioner
Citation:
Unreported Order of Calcutta HC- M/s LGW Industries Limited & Ors. Vs. Union of India & Ors. In W.P.A No. 23512 of 2019.
Sanchita Kundu Vs Assistant Commissioner of State Tax (Calcutta High Court)
Facts of the Case are as follows:
The petition has been filed by the aggrieved petitioner against the GST department for denying the benefit of Input Tax Credit (ITC) to the petitioner on the purchase of goods in question from the suppliers and asking the petitioners to pay the penalty and interest as mentioned in the GST Act. As it is considered that their GST Registration has already been canceled.
Court Observation
As per the decision of the High Court, it is decided that these writ petitions shall be disposed off after considering the submission made by the parties and on the basis of the documents submitted. Where there appears any issue regarding the benefit of ITC, the specific case shall be remanded so as to consider afresh on the issue of their entitlement of benefit of Input Tax Credit. In order to be clear and claim the genuineness of the transaction in question, it is necessary to submit documents which are correct and appropriate. Also, the respondent concerned shall also consider as to whether the payment on purchase in question along with GST were actually paid or not to the suppliers. In addition to this, consideration shall also be made in respect to whether the transactions and purchases were made before or after the cancellation of registration of suppliers. Court also stated that it is necessary to comply with the statutory obligation and check the supplier’s identity to be under proper statutory compliance.
If it is determined through inspection that all the submitted records and documents are adequate and complete; and where it is proved that the facts of the petitioners are similar to the findings of the Supreme Court, various High Courts then, the benefit of Input Tax Credit (ITC) shall be granted.
These instances of the petitioner shall be disposed of by using the respondents concerned in accordance with and in the mild of observation made above and with the aid of passing a reasoned and speaking order after giving fine probability of listening to to the petitioners, within eight weeks from the date of conversation of this order. These Writ Petitions being WPA No.7231 of 2022 and WPA No.7232 of 2022 are disposed of in the mild of remark and directions as made above.
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