Can ITC be denied on non filer of supplier GST returns?

filer of supplier GST returns?

Case Title

M/s Shivom Minerals Ltd Vs Union of India and Ors

Court

Orissa High Court

Honorable Judges

Justice Jaswant Singh and Justice M.S Raman

Citation

2022 (8) GSTPanacea 179 HC Orissa

W.P.C 13302 of  2022

Judgement Date

03-August-2022

Council for Petitioner

Jagabandhu Sahoo

Ms. K Sahoo

Council for UOI

P.K Prahi

M.K Khuntia

Council for State

Sunil Mishra

The Orissa High Court bench of Justice Jaswant Singh and M.S. Raman has held that Assessee should approach to nodal agencies or to  for any suspicios action by the supplier in respect of tax payment and no filing of returns.

FACTS OF THE CASE

The petitioner is challenging the vires of Section 16(2) clause C which states that registered person is eligible to ITC, if tax charged on such supply is either paid by cash or through credit available in ledger in respect of such supply.

The petitioner is challenged the order of GST officer dated 12th May 2022 Rourkela under section 73 of CGST, raising the demand of 12.74 crore with interest and penalty for the tax period June 2019 to Feb 2020.

Petitioner contended that he has been denied for credit just because of being non filing of GST return of one of his supplier.

Where by the respondent is directed to petitioner to petition  to Assistant Solicitor General on behalf of opposite party supplier

filer of supplier GST returns?

COURT HELD

Considering the submissions the petitioner is directed to deposit 20% of disputed amount within four weeks and in the mean time no corceive action shall be taken to petitioner.

filer of supplier GST returns?

ANALYSIS OF THE JUDGEMENT

The taxpayer shall have to follow the know your supplier policy issued by government before engaging any contract of transaction with a new supplier and also adhere regular interval checking of existing suppliers

Download PDF:

M/s Shivom Minerals Ltd

For Reference Visit:

Orissa High Court