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No denial of ITC without conducting enquiry with supplier who failed to remit tax to Govt.: HC
THE HON’BLE CALCUTTA HIGH COURT IN THE CASE OF LOKENATH CONSTRUCTION PVT. LTD. V/s TAX/REVENUE GOVERNMENT OF WEST BENGAL, decided on 2-5-2024
Issue
Can ITC would be denial without conducting enquiry with supplier who failed to remit tax to Govt?
👉 The Hon’ble High Court Judgement:-
✔️ Where revenue issued a notice under Section 73 (1) stating assessee failed to had failed to produce any evidence from which it could be ascertained that suppliers had paid tax to Government on those supplies (which are disclosed/ admitted by suppliers in their statement in GSTR-I) and that assessee had availed and utilized Input Tax Credit (ITC) in contravention of Section 16(2)(c), however assessee provided certificates from CAs confirming suppliers’ tax discharge, but revenue rejected them without inquiry, leading to an erroneous demand confirmation, therefore order confirming demand against assessee was to be set aside.
Section 73 read with section 16 of Central Goods and Services Tax Act, 2017
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