𝐏𝐫𝐨𝐜𝐞𝐞𝐝𝐢𝐧𝐠𝐬 𝐮/𝐬 𝟕𝟒 𝐨𝐟 𝐆𝐒𝐓 𝐀𝐜𝐭 𝐜𝐚𝐧𝐧𝐨𝐭 𝐛𝐞 𝐢𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐝 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐭𝐡𝐞 𝐛𝐮𝐲𝐞𝐫 𝐟𝐨𝐫 𝐚𝐯𝐚𝐢𝐥𝐢𝐧𝐠 𝐈𝐓𝐂 𝐢𝐧 𝐚 𝐟𝐫𝐚𝐮𝐝𝐮𝐥𝐞𝐧𝐭 𝐦𝐚𝐧𝐧𝐞𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐝𝐞𝐟𝐚𝐮𝐥𝐭 𝐨𝐟 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐫: 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭

SUBHASH SINGH V. DEPUTY COMMISSIONER,SGST

The appellant, involved in the retail and wholesale business of iron scrap, purchased goods with proper invoices and made payments through banking channels along with applicable GST. The details of invoices and GST payments are recorded in their books.

The appellant correctly availed the input tax credit (ITC) for April 2021 to March 2022. However, if the suppliers defaulted, the purchasing dealer shouldn't bear the consequences of denied ITC.

The appellant faced a demand of Rs. 79,41,598, which was reduced to Rs. 46,84,278 in a show cause notice, and further reduced to Rs. 19,47,801 in the order dated 22.06.2023.

The main issue is that the suppliers didn't file their returns, but the appellant provided all necessary invoices and made payments based on them. The court modified the previous order, requiring the appellant to deposit 10% of the demanded amount due to the suppliers' failure to file returns.

The appeal is disposed of with this modification.

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