https://www.taxtmi.com/caselaws?id=783898 Disallowance of ITC against the recipient without initiating statutory discrepancy proceedings against the suppliers was examined under ss. 42 and 73 of the CGST/SGST Act. The HC held that s. 42(3) mandates issuance of discrepancy notice to both supplier and recipient, and s. 42(5) permits addition to the recipient's output tax liability only if, after such notice, the supplier fails to rectify the discrepancy in its valid return; initiating s. 73 proceedings directly against the recipient breached this scheme and was also inconsistent with the principle that recovery should first proceed against the supplier. Ext.P3 show cause notice was quashed, with liberty to proceed against the suppliers. en-us Mon, 27 Oct 2025 00:00:00 +0530 Sat, 20 Dec 2025 14:00:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783898 Disallowance of ITC against the recipient without initiating statutory discrepancy proceedings against the suppliers was examined under ss. 42 and 73 of the CGST/SGST Act. The HC held that s. 42(3) mandates issuance of discrepancy notice to both supplier and recipient, and s. 42(5) permits addition to the recipient's output tax liability only if, after such notice, the supplier fails to rectify the discrepancy in its valid return; initiating s. 73 proceedings directly against the recipient breached this scheme and was also inconsistent with the principle that recovery should first proceed against the supplier. Ext.P3 show cause notice was quashed, with liberty to proceed against the suppliers. Case-Laws GST Mon, 27 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783898