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

Arnesh Kumar vs State of Bihar & Anr.

Whether arrest can be made automatically merely because an offence is cognizable and non-bailable — Supreme Court lays down mandatory safeguards under Sections 41 & 41A Cr.PC to prevent unnecessary arrest and casual authorisation of detention, particula

BackgroundThis was a non-tax, criminal matter arising from a matrimonial dispute...

Read More
Suncraft Energy Private Limited & Anr. v. Assistant Commissioner, State Tax, Ballygunge Charge & Ors.

forms under GST (Sections involved: Section 16(2) and Section 73 of the West Bengal Goods and Services Tax Act, 2017)

Facts The appellant availed Input Tax Credit on purchases made from a suppl...

Read More
Kandan Hardware Mart & Others vs The Assistant Commissioner (ST) & Others

Validity of levy of late fee under Section 47 and general penalty under Section 125 of GST Acts in light of Amnesty Notification No. 07/2023.

The petitioners challenged assessment orders and show cause notices imposing lat...

Read More