M/s LGW Industries Ltd. & Others v. Union of India & Others

INTRODUCTION

The Calcutta High Court considered whether a bona fide purchasing dealer could be denied Input Tax Credit (ITC) merely because the suppliers were subsequently found to be fake or their GST registrations had been cancelled retrospectively.

The petitioners challenged the orders denying ITC, interest and penalty on purchases made from registered suppliers. They also challenged the constitutional validity of Section 16(2)(c) of the CGST/WBGST Act, contending that a purchaser cannot be denied ITC merely because the supplier fails to deposit tax with the Government.