SC: Big Relief on ITC front. Remittance of tax by Supplier not be the only reason.

Hon’ble 𝐒𝐮𝐩𝐫𝐞𝐦𝐞 𝐂𝐨𝐮𝐫𝐭 𝗱𝗶𝘀𝗺𝗶𝘀𝘀𝗲𝗱 𝘁𝗵𝗲 𝗱𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁'𝘀 𝗦𝗟𝗣 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝘁𝗵𝗲 𝗖𝗮𝗹𝗰𝘂𝘁𝘁𝗮 𝗛𝗖 𝗷𝘂𝗱𝗴𝗺𝗲𝗻𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗮𝘀𝗲 𝗼𝗳 𝗦𝘂𝗻𝗰𝗿𝗮𝗳𝘁 𝗘𝗻𝗲𝗿𝗴𝘆 𝗣𝘃𝘁. 𝗟𝘁𝗱.

The Supreme Court has 𝗱𝗶𝘀𝗺𝗶𝘀𝘀𝗲𝗱 𝘁𝗵𝗲 𝗱𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁'𝘀 𝗦𝗟𝗣 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝘁𝗵𝗲 wherein it was held that the *purchasing dealer's ITC cannot be denied by the department on the ground that supplying dealer has not remitted the tax so collected unless there is an exceptional case like the supplier going missing or any situation wherein it becomes impossible for the department to collect tax from such a supplier

Hon’ble Supreme Court dismissed the Special Leave Petition (SLP) against the Calcutta High Court judgment.

The case involved the denial of Input Tax Credit (ITC) to a purchasing dealer by the department based on the supplying dealer's failure to remit tax.

Hon’ble High Court ruling emphasized that ITC cannot be denied unless exceptional circumstances exist, such as the supplier going missing or situations where tax collection becomes impossible.

Diary No. 44242/2023