Jyoti Tar Products Private Limited & Anr. Vs Deputy Commissioner, State Tax, Shibpur, WBGST & Ors. (Calcutta High Court)
Calcutta High Court’s Landmark Ruling: The retrospective cancellation of the suppliers’ GST registrations did not invalidate recipient’s claim to ITC
Introduction:
The retrospective cancellation of Goods and Services Tax (GST) registrations has emerged as a contentious issue since the implementation of the GST law. Despite various pronouncements by the GST Council, the controversy surrounding a recipient’s eligibility to claim Input Tax Credit (ITC) from suppliers whose registrations have been retrospectively cancelled remains a significant source of GST litigation. This article delves into this particular issue, examining the recent judgment of the High Court of Calcutta in the case of M/s Jyoti Tar Products Pvt. Ltd. & Anr. v. The Deputy Commissioner, State Tax, Shibpur (W.P.A 22106 of 2024)
Brief Facts of the case:
The petitioners, M/s Jyoti Tar Products Pvt. Ltd., approached the Calcutta High Court under Article 226 of the Constitution of India, seeking quashing of a Show Cause cum Demand Notice (SCN) issued under Section 74 of the CGST and WBGST Acts. The SCN, dated August 8, 2024, demanded a total payment of ₹36,04,552/- (comprising CGST and WBGST, along with interest and penalties) for the financial year 2023–2024. The notice alleged wrongful availment of Input Tax Credit (ITC) on inward supplies from suppliers who were either unregistered or non-existent.
