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Need SUPREME COURT ORDER COPY

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SUNIL SULTANIA

27 Points Posted on 07 July 2021

Please send the SUPREME COURT ORDER COPY if any, with respect to No GST can be demanded from Buyer for fault of Seller of non-payment of taxes to Govt.

Fact : - Buyer purchased Taxable Goods from seller.

- Payment of tax has been made by the purchasing dealer, but the same has not been remitted to the Government by the Seller

- Seller GSTR 3B & GSTR-1 : Not filed

- Buyer GSTR 2A : NIL

- Buyer claimed ITC on the basis of Invoice & receipt of goods and Full payment made to the seller.

- Now Assessing Officer issued notice u/s 73 of CGST Act, 2017 to BUYER for Payment of excess ITC Claimed.

Replies (6)

Quick Summary

This discussion seeks a Supreme Court order copy concerning whether a buyer is liable for GST when the seller fails to remit taxes to the government, despite the buyer having paid the tax and claimed Input Tax Credit (ITC). While there isn't a direct Supreme Court ruling on this specific GST issue, the Madras High Court's judgment in M/s. D. Y. Beathel Enterprises v. the State Tax Officer is highlighted as a key precedent. It's noted that this is a contentious area requiring legal contestation, potentially up to the High Court level.

Imthias ahamed Kormath

635 Points Posted on 07 July 2021

We can learn that u do not contacted with ur supplier till the notice issued u/s 73 of Cgst Act,2017 by assessing officer.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 08 July 2021

There is no Judgement from Hon'ble Supreme court , yes can refer recent judgement from The Hon’ble Madras High Court in M/s. D. Y. Beathel Enterprises v. the State Tax Officer , dated February 24, 2021

CA Altamush Zafar

GST Consultant

10402 Points Posted on 08 July 2021

There is no supreme court ruling yet. You can take the benefit of DY Beathel case as suggested by Mr Rawat. Chattisgarh HC has stayed the proceeding by citing that case.

All in all you will have to contest your case atleast till HC.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 08 July 2021

The judgment you are talking about was delivered by Supreme Court in pre GST regime in the case of Kay Kay Industries.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 08 July 2021

This is a contentious issue. You can cite Supreme Court ruling as well as Madras HC ruling. though the department may argue Madras HC judgment was a jurisdictional HC judgment and they may not accept the same in your case. But this is case to fight with.