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

Commissioner of Trade and Tax, Delhi v. Shanti Kiran India (P) Ltd.

Date of Order: October 9, 2025
Case Law No: GIB-SC-2025-39
Subject: Entitlement of Input Tax Credit to purchasing dealer despite non-deposit of tax by selling dealer under DVAT (Section involved: Section 9(1) and Section 9(2)(g) of the Delhi Value Added Tax Act, 2004)
Description:

Facts 
The issue before the Court was whether purchasing dealers who paid tax to registered selling dealers are entitled to Input Tax Credit even if the selling dealers failed to deposit the tax with the Government. The selling dealers were registered at the time of transactions but later defaulted and their registrations were cancelled. The Delhi High Court held that the purchasing dealers were bona fide and entitled to ITC. The Revenue challenged this decision before the Supreme Court. 


Court Decision:
The Supreme Court dismissed the appeals and upheld the High Court’s decision. It held that where transactions and invoices are genuine and the selling dealer was registered at the time of transaction, ITC cannot be denied to bona fide purchasing dealers. The Court found no reason to interfere with the grant of ITC after due verification. 


Cases Referred by Court:
•    On Quest Merchandising India Pvt. Ltd. v. Government of NCT of Delhi 
•    Commissioner of Trade and Taxes v. Arise India Ltd. 
 

Other Case Law

Zeba Khan v. State of Uttar Pradesh & Ors.

Cancellation/annulment of bail – offences under Sections 419, 420, 467, 468, 471 IPC involving forged educational degrees and organised fraud. Scope of appellate interference in bail orders; suppression of material facts and criminal antecedents in bail

Facts:An FIR was registered alleging an organised racket involving forged LL.B. ...

Read More
BirlaNu Ltd. (ISD) vs. Union of India & Ors.

Validity of Rule 39(1)(a) of CGST Rules, 2017 – Distribution of Input Tax Credit by Input Service Distributor – Section 20 of the CGST Act, 2017 and Penalty under Section 122(1)(ix) of the CGST Act, 2017.

Facts:The petitioner, registered as an Input Service Distributor (ISD), accumula...

Read More
Veremax Technologie Services Limited vs Assistant Commissioner of Central Tax

Show Cause Notice – Clubbing of multiple financial years in a single show cause notice under Section 73 of the CGST Act, 2017 – validity of consolidated show cause notice.

Facts:The petitioner challenged the show cause notice dated 03.05.2024 and the O...

Read More