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

Last updated: 20 February 2024

Save Share

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]

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

265 Views Comment Share GST Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments