Calcutta HC Annuls Directive for ITC Reversal due to Supplier’s GST Registration Cancellation

Car Chassis Carriers Private Limited & anr Vs Assistant Commissioner (Calcutta High Court)

Calcutta High Court Annuls Authority’s Email Directive to reverse ITC due to retrospective cancellation of supplier’s GST Registration

Introduction: The Calcutta High Court recently delivered a significant judgment in the case of Car Chassis Carriers Private Limited & anr. vs. Assistant Commissioner. The court annulled the authority’s email directive, which instructed the petitioner to reverse input tax credit (ITC) against a supply following the retrospective cancellation of the supplier’s GST registration.

Analysis

In its judgment dated 22.03.2023, the Hon’ble Division Bench of the Calcutta High Court scrutinized the circumstances surrounding the communication sent by the authority via email. The court ruled that the appellant, who had already availed the ITC against the inward supply, could not be compelled to reverse the credit based solely on an email without providing a valid explanation for the cancellation of the selling dealer’s registration.

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