Shiva Chemicals & Anr. Vs Assistant Commissioner of Revenue (Calcutta High Court)
The case of Shiva Chemicals & Anr. Vs Assistant Commissioner of Revenue presented a significant legal challenge concerning the denial of Input Tax Credit (ITC) under the WBGST/CGST Act, 2017. This judgment from the Calcutta High Court scrutinizes the validity of the ITC claims and the procedural compliance by the petitioner, offering crucial insights into GST law and its implications for businesses.
1. Background and Context
The writ petition was filed challenging the order dated April 13, 2022, under Section 73 of the WBGST/CGST Act, 2017. The primary issue revolved around the admissibility of ITC claimed by Shiva Chemicals against supplies received from several suppliers whose GST registrations had been retrospectively canceled.
2. Show Cause Notice and Adjudication
The petitioner received a show-cause notice for availing and utilizing ITC amounting to ₹18,79,978/-. The notice was based on the assertion that the suppliers’ registrations were canceled before the period in question, rendering the ITC inadmissible. This culminated in an adjudication order passed on April 13, 2022, which the petitioner appealed.
3. Appellate Proceedings
During the appeal, Shiva Chemicals produced several documents, including the party ledger, tax invoices, bank statements, and GSTR-2A returns. Despite these submissions, the appellate authority upheld the denial of ITC, citing insufficient evidence of the movement of goods and other transactional documentation.
