GST INDIA Biz
GST India .biz — Case Law Details
Detailed GST Case Law Information

Shanti Kiran India Pvt. Ltd. v. Commissioner, Trade & Tax Department

Date of Order: January 4, 2013
Case Law No: GIB-DHC-2013-02
Subject: 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)
Description:

Facts :
The appellant, a registered dealer, purchased goods from registered selling dealers against valid tax invoices and claimed input tax credit. The VAT authorities disallowed ITC on the ground that selling dealers had deposited disproportionately low tax and their registrations were later cancelled. The assessment orders, objection orders, and Tribunal upheld denial of ITC and imposed tax, interest, and penalty. The appellant challenged these findings before the High Court. 


Court Decision:
The High Court held that denial of ITC was not justified in the absence of any statutory provision (during the relevant period) requiring the purchasing dealer to ensure that the selling dealer deposited tax. It held that Section 9(2) did not contain such a condition prior to insertion of clause (g), and the Tribunal’s interpretation was erroneous. The Court allowed the appeals and directed grant of input tax credit to the appellant after verification. 


Cases Referred by Court:
•    State of Maharashtra v. Suresh Trading Company 
•    Althaf Shoes Pvt. Ltd. v. Assistant Commissioner (CT) 
•    V.M. Salgaocar & Bros. Pvt. Ltd. v. Commissioner of Income Tax 
•    Shyam Sunder v. Ram Kumar 
•    Bihar State Council of Ayurvedic and Unani Medicine v. State of Bihar 
•    R.S. Joshi v. Ajit Mills 
•    Shree Sajjan Mills Ltd. v. Commissioner of Income Tax 
•    George Oakes (Private) Ltd. v. State of Madras 
•    Commissioner of Central Excise v. Hari Chand Shri Gopal 
•    State of Jharkhand v. Govind Singh 
•    J.P. Bansal v. State of Rajasthan 
 

Other Case Law

Prakash Medical Stores v. Union of India & Ors.

Interpretation of limitation under Section 107 of the U.P. GST Act, 2017 read with Section 161 and applicability of principles of Section 14 of the Limitation Act, 1963. Issue of exclusion of time spent in rectification proceedings and limitation for fili

Facts:The petitioner challenged an appellate order dismissing its appeal as time...

Read More
Khalid Buhari vs Assistant Commissioner of CGST and Central Excise & Another

Attachment of director’s bank account for company’s GST liability under Section 89 of the CGST Act without giving opportunity to discharge burden of proof.

Court Decision:The writ petition challenged the recovery notice dated 25.11.2025...

Read More
C.H. Robinson Worldwide Freight India Private Limited vs Additional Commissioner, CGST Delhi South & Ors.

Whether a Show Cause Notice issued under Section 73 of the CGST Act, 2017 is barred by limitation where it was not served upon the assessee at least three months prior to the outer time limit prescribed under Section 73(10) of the CGST Act — and whether

BACKGROUNDThe CGST Department (Delhi-South) conducted a scrutiny of the returns ...

Read More