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

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

Date of Order: August 2, 2023
Case Law No: GIB-CHC-2023-03
Subject: forms under GST (Sections involved: Section 16(2) and Section 73 of the West Bengal Goods and Services Tax Act, 2017)
Description:

Facts 
The appellant availed Input Tax Credit on purchases made from a supplier and paid the tax amount along with the value of goods/services. The department issued notices alleging mismatch between GSTR-2A and GSTR-3B and non-reflection of supplier invoices in GSTR-1. A demand order under Section 73(10) was passed reversing ITC along with interest and penalty. The writ petition was disposed of directing the appellant to file a statutory appeal, which led to the present intra-court appeal. 


Court Decision:
The High Court set aside the demand order and held that reversal of ITC was not justified without first taking action against the selling dealer. The Court held that when the purchasing dealer has fulfilled conditions under Section 16(2), including possession of invoice, receipt of goods/services, and payment of tax, ITC cannot be denied merely due to non-reflection in GSTR forms. It was further held that proceedings against the purchaser can arise only in exceptional circumstances such as fraud, collusion, or where the supplier is non-existent or without assets. 


Cases Referred by Court:
•    Union of India v. Bharti Airtel Ltd. 
•    Arise India Limited v. Commissioner of Trade and Taxes, Delhi 
•    Commissioner of Trade and Taxes v. Arise India Limited (SLP dismissed) 
 
 

Other Case Law

S.A. Aromatics Pvt. Ltd. & Anr. vs. Union of India & Ors.

Validity of composite show cause notice for multiple financial years and multiple noticees – Sections 73, 74 and 6(2)(b) of the CGST Act, 2017 and UPGST Act, 2017.

Facts:Search and investigation proceedings were conducted by different GST autho...

Read More
Sri Padmavathi Marketing v. Assistant Commissioner of Commercial Taxes

Scope of Rule 86A – Whether ITC can be blocked for supplier when alleged wrongful availment is by recipient.

Case Facts:The petitioner challenged a show-cause notice proposing blocking of I...

Read More
Marfani Steel Impex, through its proprietor Mohammed Irfan Marfani vs The Principal Commissioner, Central Goods and Services Tax & Central Excise, Nagpur & Ors.

Show Cause Notice – Clubbing of multiple financial years under Section 74 of the CGST Act, 2017 – validity of consolidated show cause notice for different tax periods.

Facts:The petitioner challenged the show cause notice dated 30.05.2025 issued un...

Read More