Revisability of return invalidation communications under tax procedure affirmed, impugned non revisional finding quashed and matter remitted for fresh...
Transferable duty credit scrips validity and bona fide transferee entitlement to exemption upheld where scrips were subsisting at import, appeals allo...
Classification of knocked down motor vehicle component imports: Notification benefit denied because items are standalone non kit parts requiring subst...
Section 16(2)(c) CGST Act, requiring that the supplier must have paid tax to enable the purchaser's ITC, was examined where the purchaser had paid GST to the supplier under genuine invoices but the supplier allegedly failed to remit it. The provision was held constitutionally valid, but was read down to avoid disproportionate consequences and arbitrariness under Article 14 by distinguishing bona fide purchasers from collusive or fraudulent transactions. Since there was no allegation of fraud, wilful misstatement, or suppression by the purchaser and recovery mechanisms against the defaulting supplier existed, ITC could not be denied to the bona fide purchaser; the impugned denial order was set aside and the petition partly allowed. - HC
Section 16(2)(c) CGST Act, requiring that the supplier must have paid tax to enable the purchaser's ITC, was examined where the purchaser had paid GST to the supplier under genuine invoices but the supplier allegedly failed to remit it. The provision was held constitutionally valid, but was read down to avoid disproportionate consequences and arbitrariness under Article 14 by distinguishing bona fide purchasers from collusive or fraudulent transactions. Since there was no allegation of fraud, wilful misstatement, or suppression by the purchaser and recovery mechanisms against the defaulting supplier existed, ITC could not be denied to the bona fide purchaser; the impugned denial order was set aside and the petition partly allowed. - HC
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