M/s Gargo Traders v. The Joint Commissioner, Commercial Taxes

INTRODUCTION

The case concerned the entitlement of a registered taxable person (RTP) to Input Tax Credit (ITC) where purchases had been made from a supplier whose GST registration was subsequently cancelled with retrospective effect.

The petitioner contended that, at the time of the transactions, the supplier was a validly registered dealer, the purchases were genuine, tax had been paid, and all statutory requirements for availing ITC had been fulfilled. The Department, however, denied the ITC on the ground that the supplier’s registration had been retrospectively cancelled.