Commissioner of Trade and Tax, Delhi v. Shanti Kiran India (P) Ltd.
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
Barjinder Singh Kohli vs The Assistant Commissioner of Revenue & Ors.
Appeal – Sections 107(1), 107(4) & 107(6) of CGST Act, 2017 / WBGST Act, 2017 – requirement of pre-deposit when the order involves only interest and penalty without tax demand.
Facts:The petitioner challenged an appellate order dated 15.05.2025 passed under...
Read MoreCommissioner of Income Tax (Central)-I, New Delhi v. Vatika Township Pvt. Ltd.
Whether proviso to Section 113 of the Income Tax Act (levy of surcharge on block assessment) is retrospective or prospective
Facts :A search and seizure operation was conducted on the assessee, followed by...
Read MoreKanhaiya Nilambar Jha vs. Union of India & Ors.
: Legality of summons and alleged illegal detention during GST inquiry – Sections 69, 70 and 132 of the CGST Act, 2017.
Facts :The petitioner alleged that GST officers illegally detained him from 17.0...
Read More