ITC Reversal Not Sustainable When Supplier Was Registered and Tax Was Paid at Time of Transaction – Allahabad High Court
1. Background: The Real-World GST DilemmaIn GST litigation, one issue keeps resurfacing—can a bona fide buyer be punished for alleged wrongdoing of the supplier? The present judgment of the Allahabad High Court answers this question decisively. The case revolves around M/s Saniya Traders, a registered dealer who purchased old scrap batteries from a supplier who was validly registered on the date of transaction, complied with statutory requirements, and paid tax to the government. Yet, the department attempted to deny Input...
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