2026 (6) TMI 754

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....er the Central Goods Services Tax Act 2017 is liable to be quashed at the threshold on the ground that the demand has been raised solely on the basis of the alleged non-existence of the supplier without appreciating the scope of the statutory provision and without conducting proper enquiry. 3. The petitioner in the instant case challenges, inter alia, the legality, validity and sustainability of issuance of the show cause notice dated 10.03.2026. 4. It is submitted by the petitioner that the sole ground for imposing demand upon the petitioner is that the concerned supplier from whom the petitioner had availed inward supplies and consequently input tax credit based on such inward supplies, is non-existent. It is further submitted that ....

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....in adjudication proceedings under Section 75 of the CGST Act, 2017. 11. The show cause notice has been issued based on intelligence and investigation which revealed that the petitioner has transacted with a non-existent entity which had no business existence at all and was only involved in issuing invoices without any actual supplying of underlying goods. The respondents contends that under section 16(2)(c) of the CGST Act, 2017, no input tax credit shall be available unless the tax charged in respect of such supply has been actually paid to the government. Since the supplier is non-existent, no tax has been deposited with the government exchequer and hence the petitioner is not entitled to avail ITC. 12. Having heard the parties and ....