Sahil Enterprises v. Union of India & Ors.
Facts :
The petitioner, a trader in rubber products, purchased goods from a supplier and paid GST amounting to Rs.1,11,60,830/-. The supplier filed GSTR-1 but failed to deposit tax with the Government and filed nil GSTR-3B returns. The department denied ITC to the petitioner, blocked credit, and issued a demand under Section 73. The petitioner challenged the demand order dated 17.05.2022 and the constitutional validity of Section 16(2)(c).
Court Decision:
The High Court upheld the constitutional validity of Section 16(2)(c) but read down the provision. It held that ITC cannot be denied to a bona fide purchasing dealer where transactions are genuine and tax has been paid to the supplier. The Court set aside the demand order and directed grant of ITC to the petitioner, holding that denial is permissible only in cases of fraud, collusion, or non-genuine transactions.
Cases Referred by Court:
• B.R. Enterprises v. State of U.P.
• CST v. Radhakrishan
• On Quest Merchandising India Pvt. Ltd. v. Government of NCT of Delhi
• Commissioner of Trade and Taxes v. Arise India Ltd.
• Shanti Kiran India (P) Ltd. v. Commissioner Trade and Tax
• National Plasto Moulding v. State of Assam
• McLeod Russel India Ltd. v. Union of India
• Laxmipat Singhania v. CIT
• Mahaveer Kumar Jain v. CIT
• Jain Bros. v. Union of India
• Chief Commissioner of CGST v. Safari Retreats Pvt. Ltd.
Other Case Law
Bengal Engineering vs State of West Bengal & Ors
Legality of GST assessment exceeding Show Cause Notice amount and denial of personal hearing under Sections 75(7) and 75(4) of the West Bengal GST Act, 2017.
The Division Bench allowed the appeal and set aside the Adjudication Order dated...
Read MoreShanti Kiran India Pvt. Ltd. v. Commissioner, Trade & Tax Department
Denial of Input Tax Credit to purchasing dealer due to non-payment of tax by selling dealer under DVAT (Section involved: Section 9(1) and Section 9(2) of the Delhi Value Added Tax Act, 2004)
Facts :The appellant, a registered dealer, purchased goods from registered selli...
Read MoreAnkur Kampani v. Union of India & Others
Quashing of GST penalty order passed without issuance of notice — violation of principles of natural justice and Section 75(4) of the CGST Act, 2017.
BackgroundA penalty of Rs. 4,03,26,803/- was imposed on the petitioner vide orde...
Read More