ITC Claim Must Be Reconsidered as Retrospective Supplier Registration Cancellation Alone Was Not Sufficient

Barun Kumar Biswas Vs Union of India and anr. (Calcutta High Court)

The Calcutta High Court allowed a writ petition challenging the legality and validity of an order dated 3 December 2025 that denied the petitioner Input Tax Credit (ITC) on invoices issued by the supplier, M/s. Adrian Infra Services Private Ltd., during the period from April 2021 to June 2021. The dispute arose after the supplier’s GST registration was retrospectively cancelled with effect from 28 November 2019, resulting in the respondent authorities treating the invoices issued between April 2021 and July 2021 as invalid under Section 16 read with Section 31 of the Central Goods and Services Tax Act, 2017, Rule 36 of the Central Goods and Services Tax Rules, 2017, and Instruction No. 02/2022-GST dated 22 March 2022. Consequently, the adjudicating authority held that the petitioner had irregularly availed ITC amounting to ₹1,24,16,354 (CGST ₹62,08,177 and SGST ₹62,08,177) under Section 73(9) of the CGST Act and the corresponding provisions of the West Bengal GST Act. Thereafter, a show cause notice dated 10 September 2025 was issued under Section 73 for the financial year 2021-22. The petitioner filed a reply asserting that all conditions prescribed under Section 16(2) of the CGST Act had been fulfilled while availing the ITC.