GST UPDATE
Desk of CA. Praveen Sharma
Series- 446
The claim of ITC raised cannot be sustained when the supplying/selling dealer has not paid up the amounts to the Government; despite collection of tax from the purchasing dealer.
1- PATNA HIGH COURT in the case of Aastha Enterprises. Section 16 of the CGST Act, 2017.
2- The counsel for the petitioner submitted that the purchases were made after making payments through bank accounts. Invoices were issued by the selling dealer and the movement of the goods purchased. The selling dealer has not paid up the tax liability, to the State.
3- The contention of double taxation does not impress since the claim is denied only when the supplier who collected tax from the purchaser fails to pay it to the Government.
4- The Government definitely could use its machinery to recover the amounts from the selling dealer and if such amounts are recovered at a later point of time, the purchasing dealer who paid the tax to its supplier could possibly seek for refund.
5- The claim of Input Tax Credit raised by the petitioner cannot be sustained when the supplying/selling dealer has not paid up the amounts to the Government; despite collection of tax from the purchasing dealer.
Held, the writ petition is dismissed.
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CA. Praveen Sharma
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