Petitioner is not liable to pay penalties for the wrongful availment of ITC by the Supplier

Last updated: 20 February 2024
Quick Summary
The Calcutta High Court has ruled that a company, Fairdeal Metals Ltd., is not liable for penalties arising from a supplier's fraudulent claim of Input Tax Credit (ITC). The court found that the petitioner had no connection to the supplier's actions and that the supplier had already paid the ITC before penalties were levied. Consequently, the order imposing the penalty on the petitioner was quashed, and their detained goods and vehicle were ordered to be released.

Court :
Calcutta High Court

Brief :
The Hon'ble Calcutta High Court in the case of Fairdeal Metals Ltd. v. Assistant Commissioner of Revenue, State Tax, Bureau of Investigation (NB) [Writ Petition Application No. 170 of 2024 dated February 01, 2024], held that the Petitioner was not responsible for bogus availment of Input Tax Credit ("ITC") by the Supplier. Therefore, the Petitioner is not liable to pay the penalty.

Citation :
Writ Petition Application No. 170 of 2024 dated February 01, 2024]

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Bimal Jain
Published in GST
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