THE HON’BLE GAUHATI HIGH COURT IN THE CASE OF McLeod Russel India Ltd. V/s Union of India, decided on 27-2-2025
👉 Issue:-
✔️ Is it possible if ITC allowed to purchasing dealer despite selling dealer’s failure to deposit the collected tax?
👉 The Hon’ble High Court Judgement:-
✔️ Where assessee challenged validity of section 16(2)(aa) and section 16(2)(c) of CGST Act ASGST Act, following decision in WP(C) 2863/2022, dated 5-8-2024, section 16(2) of CGST Act ASGST Act was to be read down, in event selling dealer had failed to deposit tax collected by him from purchasing dealer, remedy for department was to proceed against defaulting selling dealer to recover such tax and purchasing dealer was not to be denied ITC.
Section 16(2) of Central Goods and Services Tax Act, 2017
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