Input tax credit denial when supplier fails to remit GST u/s16(2), Revenue appeal dismissed; relief stands.

Whether ITC can be denied under s.16(2) CGST/WBGST Act where the supplier allegedly failed to remit GST was the dominant issue. The HC had held that, in such cases, GST authorities should first proceed against the defaulting supplier and initiate action against the recipient only in exceptional circumstances consistent with CBIC's clarification; accordingly, it allowed the recipient's writ. The SC, noting the case-specific facts and the relatively low quantum of demand, declined to exercise discretionary jurisdiction under Art. 136 and dismissed the Revenue's SLP, leaving the HC's directions undisturbed.

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Title: Supreme Court of India dismisses Special Leave Petitions

Judges: Hon'ble Mrs. Justice B.V. Nagarathna and Hon'ble Mr. Justice Ujjal Bhuyan

Decision: Delay condoned. Special Leave Petitions dismissed due to lower demand. Pending applications disposed of.

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