Landmark Judgment by Calcutta High Court Impacting GST Claimants

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1/15 📢 BREAKING: The Calcutta High Court just issued a landmark judgment impacting GST claimants nationwide. Case: Gargo Traders v. State Tax, West Bengal. Judgment delivered on June 12, 2023. #CalcuttaHighCourt #GSTJustice #GargoTraders

2/15 ⚖️ Gargo Traders, a registered taxable person, contested an order that rejected their Input Tax Credit (ITC) claim, a decision that was based on the retrospective cancellation of their supplier's GST registration. #ITC #GST

3/15 🚫 The Tax Department dismissed their ITC claim, alleging that Global Bitumen, Gargo Traders' supplier, was fake and non-existent, leading to the retrospective cancellation of its GST registration. #GlobalBitumen

4/15 👥 The crux of the matter? Should an honest taxpayer bear the brunt for their supplier's malfeasance, especially if they had no prior knowledge of the misconduct and collusion could not be proven? #FairTaxation #GSTIndia

5/15 📆 Crucial timeline: Between April 1, 2018, and March 31, 2019, Gargo Traders claimed an ITC of Rs. 13,04,586 from purchases made from Global Bitumen. Transactions and payments were made according to regulations. #TaxLaws

6/15 🔍 However, Global Bitumen's GST registration was retrospectively cancelled effective October 13, 2018, covering the transaction period of Gargo Traders. An issue Gargo Traders only discovered after their ITC claim was rejected. #TaxDisputes

7/15 💼 Gargo Traders did not let this go. They brought their case to the Calcutta High Court, contesting that their ITC claim was legitimate, supported by a plethora of transaction documents. #LegalBattle

8/15 ⏩ Fast forward to April 13, 2022, when their appeal was rejected by the Joint Commissioner, State Tax, West Bengal, prompting Gargo Traders to seek justice from the Calcutta High Court. #CourtsMatter

9/15 📚 Referencing previous cases, the Gargo Traders' legal team relied on judgments from "M/s. LGW Industries Limited & Ors. vs Union of India" (Calcutta High Court) and "Balaji Exim vs Commissioner, CGST" (Delhi High Court). #LegalPrecedents

10/15 🙌 These cases established that allegations of fake credit could not reject a ITC claim unless it was proven that the petitioner had not received the goods or paid for them. #ITC #TaxJustice

11/15 💡 This paved the way for the crux of the judgment - without proving connivance and collusion, the tax department cannot reject an ITC claim based solely on the retrospective cancellation of the supplier's GST registration. #KeyJudgement

12/15 ✅ The court sided with Gargo Traders, setting aside the previous orders and directing the respondent to reconsider Gargo Traders' claim. A reasoned order within eight weeks from the receipt of the court's order was demanded. #CourtOrders

13/15 🛡️ This judgment protects GST claimants, underscoring the importance of due process and careful consideration before dismissing ITC claims. It serves as a powerful precedent for similar disputes. #TaxpayersRights

14/15 🌐 It's a significant milestone in GST law interpretation. Tax authorities are now compelled to consider all evidence before dismissing an ITC claim, promoting #FairTaxation.

15/15 🎯 This thread sheds light on a milestone in #TaxJustice and a significant victory for taxpayers. Retweet to spread awareness of this landmark judgment. Let's make this judgement go viral! 🚀