TaxTMI 
TaxTMI 
Proceedings against Supplier and Recipient for non payment of tax
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....roceedings against Supplier and Recipient for non payment of tax <br> Query (Issue) Started By: - Ganesh S Dated:- 26-11-2025 Goods and Services Tax - GST <br> Got 6 Replies <br> GST<br> <br> Dear All, During investigation, amounts were recovered from the recipient as ineligible ITC for the reason the supplier had not paid the taxes. Later, proceedings were initiated against the supplier and order....
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.... passed confirming the demand towards non-payment of tax which covers the above transaction related to ineligible ITC. SCN is now issued on the recipient to appropriate the recovery made during investigation. Are there decisions which prohibits issuance of SCN on the recipient when the proceedings are already concluded against the supplier for the same issue (GST/VAT). Thanks. --....
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....Reply By: Sadanand Bulbule The Reply: 2023 (12) TMI 739 - SC Order - THE ASSISTANT COMMISSIONER OF STATE TAX, BALLYGUNJGE CHARGE & ORS. Versus SUNCRAFT ENERGY PRIVATE LIMITED & ORS Denial of Input Tax Credit (ITC) - requirements of Section 16(2) of GST / WBGST Act fulfilled or not - Failure of the supplier to pay GST to the government - High Court while allowing the petition of....
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.... the assessee, directed the GST authorities to first proceed against the fourth respondent (supplier) and only under exceptional circumstance as clarified in the press release issued by the Central Board of Indirect Taxes and Customs (CBIC), then and then only proceedings can be initiated against the appellant. [2023 (8) TMI 174 - CALCUTTA HIGH COURT] Held that:- Having regard to the facts an....
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....d circumstances of this case(s) and the extent of demand being on the lower side, we are not inclined to interfere in these matters in exercise of our powers under Article 136 of the Constitution of India. SLP of the revenue dismissed. --Reply By: KASTURI SETHI The Reply: I agree with the reply of Sh. Sadanand Bulbule, Sir, Also read the following :- The department's stand is not legally correc....
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....t. This very issue stands decided by Hon'ble Supreme Court. Peruse the judgement dated 9.10.2025 of Hon'ble Supreme Court in the case of Commissioner Trade and Tax Delhi Vs. Shanti Kiran India (P) Ltd. - 2025 (10) TMI 607 - SCH - VAT / Sales Tax. The department's Appeal stands dismissed. SAME ISSUE was involved in this case and hence judgement fully covers your case. --Reply By: Sadanand Bulbule ....
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.... The Reply: Dear Sirji Much obliged for your validation. --Reply By: Ganesh S The Reply: Thank You Sirs. --Reply By: Ganeshan Kalyani The Reply: Department to recover the tax from supplier. --Reply By: Shilpi Jain The Reply: Also you can take support of Mafatlal case of SC which made clear the principle that the State cannot unjustly enrich itself. <br>***<br> ....
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