Order Demanding ITC Reversal Despite Tax Payment by Suppliers is Liable to be Set Aside

Case Details: Gajrar Singh Ranawat v. Union of India - [2023] 150 taxmann.com 260 (Rajasthan)

Judiciary and Counsel Details

• • Vijay Bishnoi & Yogendra Kumar Purohit, JJ.
  • Vinay Kothari & Ayush Goyal for the Petitioner.
  • Rajvendra Saraswat & Mukul Singhvi for the Respondent.

Facts of the Case

The petitioner was in business of construction of roads. It requested the supplier to supply certain material on which GST was payable. The department had passed an order for return of Input Tax Credit claimed by the petitioner. It filed writ petition against the order and contended that the order was passed though the supplier had already paid GST on the supplied items.

High Court Held

The Honorable High Court noted that the department was ignoring facts that GST on supplied items had already been paid by suppliers of the petitioner. However, the department passed an order ignoring the same and demanded for return of input tax credit claimed by petitioner. Therefore, the Court held that the impugned order passed by department was liable to be set aside and the directed to pass fresh order after providing opportunity of hearing to the petitioner.