Validity of Fresh ITC Reversal Beyond Prescribed Time: Gujarat HC Ruling

Ajay Industries & Anr. Vs Union of India & Ors. (Gujarat High Court)

The Hon’ble Gujarat High Court in Ajay Industries & Anr. v. Union of India & Ors. [SCA No. 2951 of 2025 dated April 16, 2025] held that once Input Tax Credit (“ITC”) is reversed prior to issuance of a Show Cause Notice (“SCN”), the authorities cannot raise a fresh demand on the same amount without verifying Goods and Services Tax Network (“GSTN”) data. The Court further emphasized that the proper course was t

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