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

  • Blog|News|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 17 May, 2023

Input Tax Credit

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 KothariAyush Goyal for the Petitioner.
    • Rajvendra SaraswatMukul 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.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied