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

INTRODUCTION

The dispute in M/s. LGW Industries Ltd. & Others v. Union of India & Others arose from the denial of Input Tax Credit (ITC) under the CGST/WBGST Act, 2017.

The petitioners had purchased goods from suppliers who were registered taxable persons (RTPs) at the time of the transactions and claimed ITC on the basis of valid tax invoices. Subsequently, during departmental enquiries, the GST authorities alleged that the suppliers were fake or non-existent entities, that their bank accounts had been opened using forged documents, and that their GST registrations had been cancelled retrospectively covering the relevant tax period.