Retrospective GST cancellation alone cannot defeat input tax credit where transaction documents require proper examination and fresh reconsideration.

Input Tax Credit cannot be denied solely because the supplier's GST registration was cancelled retrospectively where the transaction records themselves have not been examined. The text states that the assessment orders rejected the credit claim mainly on retrospective cancellation, without testing whether actual supply of goods was established through invoices, e-way bills, lorry receipts and related documents. It identifies the legal point that genuineness of the underlying transaction must be examined on available records before rejecting credit. On that basis, the impugned assessment orders were set aside and the matter was remanded for fresh consideration after giving a reasonable opportunity.

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Issues: Whether the denial of Input Tax Credit solely on the ground of retrospective cancellation of the supplier's GST registration was sustainable, and whether the assessment orders required reconsideration on the basis of the transaction documents.

Analysis: The orders under challenge rejected the Input Tax Credit claim mainly because the supplier's registration had been cancelled retrospectively. The Court noted that the impugned orders did not examine whether the petitioner had established actual supply of goods through invoices, e-way bills, lorry receipts and similar supporting documents. Relying on the earlier decision in substantially similar facts, the Court held that such a rejection, without testing the genuineness of the transaction on the available records, could not be sustained.

Conclusion: The impugned orders were set aside and the matter was remanded for reconsideration after giving the petitioner a reasonable opportunity.

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