Disallowance of ITC Due to Supplier’s GST Registration Cancellation Remitted Back

By POONAM GANDHI Goods and Services Tax Judiciary May 13, 2025

TaxGuru Citation: 2025 taxguru.in 3343
Case Name: Ashish Singhal Proprietor APN Trading Co. Vs Pr. Commissioner of Delhi Goods And Services Tax & Ors. (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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Ashish Singhal Proprietor APN Trading Co. Vs Pr. Commissioner of Delhi Goods And Services Tax & Ors. (Delhi High Court)

Delhi High Court held that demand on account of ITC availed from supplier whose GST registration has been cancelled retrospectively is remitted back for fresh adjudication since co-ordinate bench has set aside retrospective cancellation of supplier’s registration.

Facts- The present petition has been filed by the Petitioner– Ashish Singhal proprietor APN Trading Co. under Article 226 of the Constitution of India inter alia challenging the show cause notice along with DRC-01 dated 4^th December, 2023 issued for the financial year 2018-19. Additionally, the present petition also challenges the Notification Nos. 9/2023- Central Tax dated 31^st March, 2023 and 56/2023- Central Tax dated 28th December, 2023 issued by the Central Board of Indirect Taxes and Customs.

Conclusion- Held that to elaborate, the impugned order raises a demand of Rs. 4,34,04,126/- on account of the Input Tax Credit availed by the Petitioner from one of its suppliers namely M/s Essar Foods & Commodities. The demand was raised by the Respondent-CGST Department on the ground that the said supplier’s GST registration was cancelled retrospectively (i.e., with effect from 30th November, 2017). Consequently, the Respondent-CGST Department, through the impugned Show Cause Notice, proposed reversal of the ITC claimed by the Petitioner in respect of transactions with the said supplier during the relevant period. The said demand has since been confirmed by way of the impugned order, giving rise to the filing of the present writ petition. The primary submission of the Petitioner is that the said cancellation was challenged by M/s Essar Foods & Commodities in a writ petition being W.P.(C) No. 4826/2024, wherein the Co-ordinate Bench vide order dated 16^thOctober, 2024, has set aside the retrospective cancellation. In view thereof, the matter deserves to be heard afresh by the adjudicating authority.