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

The dispute in Sanchita Kundu & Another v. The Assistant Commissioner of State Tax arose from the denial of Input Tax Credit (ITC) under the West Bengal Goods and Services Tax Act, 2017.

The petitioners had purchased goods from suppliers who were registered taxable persons (RTPs) at the time of the transactions. Subsequently, the GST registrations of those suppliers were cancelled retrospectively, covering the period during which the purchases had been made. On this basis alone, the Proper Officer denied the petitioners the benefit of ITC by adjudication orders dated 27 December 2021, besides demanding tax, interest and penalty. Consequential recovery proceedings under Section 79(1)(c) of the WBGST Act were also initiated.