Tvl. Global Offset Printers Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
The Madras High Court ruled that Input Tax Credit (ITC) can be denied if the supplier fails to remit collected tax, even for provisional credits. It dismissed Global Offset Printers’ writ petition, directing them to pursue an appellate remedy, citing a Supreme Court precedent.
Madras High Court on Thursday, July 10, 2025, ruled that Input Tax Credit (ITC) can be denied to a purchaser if their supplier fails to remit the collected tax to the government. The court dismissed a writ petition filed by Tvl. Global Offset Printers, challenging an assessment order for the 2017-18 financial year, and suggested the petitioner pursue an appellate remedy.
The petitioner contested an assessment order dated January 22, 2025, which was preceded by an intimation of tax liability (DRC 01A) and a notice (DRC 01). Tvl. Global Offset Printers had responded to these notices and was granted a personal hearing before the final order. Their primary contention was that ITC was denied because their supplier collected tax but failed to remit it, arguing this did not warrant invoking Section 74 of the respective GST enactments for extended limitation periods.
The petitioner’s counsel referred to a Madras High Court decision in S.S. Communications Vs. The Deputy State Tax Officer-II, Kumbakonam Town (W.P.(MD) No.22420 of 2024, dated September 20, 2024). In that case, the court set aside an assessment order under Section 74 of the Act, noting the absence of any finding regarding fraud, wilful misstatement, or suppression of facts, which are prerequisites for invoking the extended limitation period.
