Sanchita Kundu & Another v. The Assistant Commissioner of State Tax & Others

INTRODUCTION

The Calcutta High Court considered whether a bona fide purchaser could be denied Input Tax Credit (ITC) merely because the GST registrations of its suppliers had been cancelled retrospectively.

The petitioners challenged the adjudication order dated 27 December 2021, whereby ITC was denied on purchases made from registered suppliers on the ground that the suppliers’ GST registrations had subsequently been cancelled with retrospective effect. Consequential recovery proceedings initiated under Section 79(1)(c) of the WBGST Act through orders dated 29 March 2022 and 30 March 2022 were also challenged.