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TMI BlogITC DeclinedX X X X Extracts X X X X X X X X Extracts X X X X ..... ITC Declined X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoice details and the intimation of the notice to us with ARN number and paid to the government. When we approach to the GST officer, he declined the ITC credit utilization and issued us a show cause notice with penalty. We are arguing with the GST office stating that all conditions in mentioned in section 16 (2) has been fulfilled. The ITC declined charge should be dropped and same should be allowed fully. The GST officer has declined to do so and forcing us to go to appeal, please advise. Reply By KASTURI SETHI: The Reply: Once the Adjudication Order is passed, only appeal is the remedy. If you opt for rectification, that will not be permitted by the Adjudicating Authority. So file appeal within stipulated period under Section 107 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act. You are not at fault. The supplier is the defaulter. The buyer should not suffer due to the supplier's fault. There are so many case laws in your favour. Chances are bright because Govt. dues stand paid with interest and penalty as informed by you. What is the date of issuance of the Adjudication Order ? What is period involved ? What are the dates of invoices on which ITC has been denied ? Reply By ABHAY BHAGALI: The Reply: I have replied to SCN on 8/3/25. Order yet to be passed. The supplier invoice was Aug 22. His registration was cancelled suo motto from June 22. My question is if in the present scenario if all conditions as per section 16 (2) meets how come the officer deny ITC. Reply By KASTURI SETHI: The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly: What is the date of issuance of the Order for cancellation of GSTIN ? It appears that GSTIN has been cancelled retrospectively. Pl. confirm. Reply By ABHAY BHAGALI: The Reply: Yes the registration is cancelled before date of the invoice. DRC 07 received today reason unsatisfactory reply. Penalty with interest has been levied. Reply By ABHAY BHAGALI: The Reply: The GST registration of supplier is cancelled from June 22 and issuance order is not known Reply By KASTURI SETHI: The Reply: How the date of issuance of order not known ? Any Adjudication Order cannot be issued without date and without DIN. Has the Adjudicating Authority signed without date ? There must be desp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch no. and date of despatch ? Re-check pl. Reply By KASTURI SETHI: The Reply: Without full facts relevant case law cannot be posted in your favour. Reply By Shilpi Jain: The Reply: As per law ITC cannot be denied by officer but there are no mechanisms in place to stop the officer from issuing such notices. You will have to file the appeal and take your matter to the next appeal level where you could expect some relief Reply By ABHAY BHAGALI: The Reply: Thanks.Mam, Sethi sir I am taking closure order date from supplier. I will post Reply By KASTURI SETHI: The Reply: If the GSTIN has been cancelled retrospectively, there is a plethora of judgements of High Courts in your favour. That is why I am asking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the date of issuance of Adjudication Order. Reply By Shilpi Jain: The Reply: All these are unwanted litigations created by department. Genuine Taxpayer is under loss due to all of this. Reply By ABHAY BHAGALI: The Reply: Kind attn Mr. Sethi sir Invoice date 31/08/22 Registration of supplier cancelled suo motto effective from 30 June 2022. This order was issued to the supplier on 18/5/2023. Section 29 (2) C Reply By KASTURI SETHI: The Reply: (i) ITC cannot be denied due to retrospective cancellation of GSTIN of the supplier. You have taken ITC on valid invoices issued by the supplier who was duly registered with the department at the time of taking ITC. Registration Certificate was issued by Govt. of India/ State Govt. The issua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of GST Registration Certificate cannot be denied by the department. (ii) Still personal hearing is to be held. You can file additional submissions in the course of personal hearing. You are to ensure that the letter of additional submissions is recorded in the record of personal hearing which is to be signed by the Adjudicating Authority and Noticee both. Also request for photo copy of the Record of Personal Hearing. (iii) You can rely upon the following case laws :- 1. TMI Issue ID Nos. 438959, 435143 & 416068 Also peruse all the case laws mentioned in the judgments on the basis of which High Courts have issued Orders. Reply By KASTURI SETHI: The Reply: Gauhati High Court has held that purchasing dealer cannot be punished, if sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling dealer failed to deposit tax. Relevant portion of the judgement is appended below 2024 (8) TMI 836 - GAUHATI HIGH COURT - NATIONAL PLASTO MOULDING, M/S. SOCIETY SOAP WORKS AND ANR, JUGAL KISHORE DAGA, ABHAY ASSOCIATES AND ANR, MADHU JAIN, MAHABIR PRASAD MAHENDRA KUMAR, DIPANKAR BANIK, VIJAY TRADING CO., TOLARAM SURENDAR KUMAR KUNDALIA AND ANR, SURENDER KUMAR KUNDALIA, GUNCHAND DALCHAND, HEMKARAN STORES, M/S. RATHI TRADERS AND ANR,. VERSUS THE STATE OF ASSAM, THE COMMISSIONER OF STATE TAXES (EARLIER KNOWN AS THE COMMISSIONER OF TAXES) GUWAHATI, THE SUPERINTENDENT OF TAXES, NISHANT SALES CORPORATION, THE UNION OF INDIA, THE COMMISSIONER CENTRAL GOODS AND SERVICE TAX GUWAHATI, THE ASSISTANT COMMISSIONER CENTRAL GOODS ANA SERVIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E TAX TEZPUR, JVL AGRO INDUSTRIES LTD., Validity of Sections 16 (2) (c) and 16 (2) (d) of the Assam Goods and Services Tax Act, 2017 as well as the validity of Sections 16 (2) (c) and 16 (2) (d) of the Central Goods and Services Tax Act, 2017 - whether purchasing dealer cannot be punished for the act of the selling dealer in case the selling dealer had failed to deposit the tax collected by it? - HELD THAT:- The controversy raised in this batch of writ petitions is squarely covered by the decision of the Delhi High Court in the case of On ON QUEST MERCHANDISING INDIA PVT. LTD., SUVASINI CHARITABLE TRUST, ARISE INDIA LIMITED, VINAYAK TREXIM, K.R. ANAND, APARICI CERAMICA, ARUN JAIN (HUF), DAMSON TECHNOLOGIES PVT. LTD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., SOLVOCHEM, M/S. MEENU TRADING CO., & MAHAN POLYMERS VERSUS GOVERNMENT OF NCT OF DELHI & ORS. & COMMISSIONER OF TRADE & TAXES, DELHI AND ORS. [2017 (10) TMI 1020 - DELHI HIGH COURT] where it was held that 'the default assessment orders of tax, interest and penalty issued under Sections 32 and 33 of the DVAT Act, and the orders of the OHA and Appellate Tribunal insofar as they create and affirm demands created against the Petitioner purchasing dealers by invoking Section 9 (2) (g) of the DVAT Act for the default of the selling dealer, and which have been challenged in each of the petitions, are hereby set aside.' Hence, the show cause notices impugned in the present writ petitions and the consequential orders are set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de. However, the Department is free to act in those cases, where the purchase transactions are not bona fide, in accordance with law.
The writ petition is disposed off. X X X X Extracts X X X X X X X X Extracts X X X X
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