https://www.taxtmi.com/caselaws?id=441195 Input tax credit was denied under s.16(2) WBGST Act solely because the supplier's outward supply was not reflected in the supplier's GSTR-1, implying non-payment of tax to the Government. The HC held that the show cause notice did not dispute that the purchaser possessed a valid tax invoice, had received the goods/services, and had paid the consideration and tax to the supplier, which was substantiated by invoices and bank statements; denial of credit without proceeding against the defaulting supplier was arbitrary. The proper course was to act against the supplier, and reversal could be directed against the purchaser only in exceptional contingencies such as collusion, missing/closed supplier, or absence of recoverable assets. The demand was set aside and the appeal was allowed, with directions to decide in line with the CBIC circular. en-us Wed, 02 Aug 2023 00:00:00 +0530 Tue, 23 Dec 2025 17:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441195 Input tax credit was denied under s.16(2) WBGST Act solely because the supplier's outward supply was not reflected in the supplier's GSTR-1, implying non-payment of tax to the Government. The HC held that the show cause notice did not dispute that the purchaser possessed a valid tax invoice, had received the goods/services, and had paid the consideration and tax to the supplier, which was substantiated by invoices and bank statements; denial of credit without proceeding against the defaulting supplier was arbitrary. The proper course was to act against the supplier, and reversal could be directed against the purchaser only in exceptional contingencies such as collusion, missing/closed supplier, or absence of recoverable assets. The demand was set aside and the appeal was allowed, with directions to decide in line with the CBIC circular. Case-Laws GST Wed, 02 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441195