Supreme Court Dismisses Special Leave Petition of Revenue against Decision of Calcutta High Court in Suncraft Energy Private Limited & Anr. Vs The Assistant Commissioner State Tax Ballygunje Charge & Ors. (MAT 1218 of 2023 with I.A. No. CAN 1 of 2023 decided on 02.08.2023)
Editor:
In a welcome move for assesses, the Supreme Court has dismissed an SLP by Revenue against the aforesaid HC Verdict. The HC had ruled earlier that credit reversal could not be sought from recipient of supply just because the tax had not been paid by supplier as long as transaction was genuine. The Revenue Authorities were first required to proceed against the supplier to recover tax due that has been collected by him from his customer before recovery could be made from customer. Question of recovery from customer would arise where the Revenue Authorities cannot recover tax from supplier due to him being missing, or due to closure of his business or if there are inadequate assets. This was with regard to credits availed for FY 2017-18 and found to be recoverable based on comparison of Form GSTR 3B figures with Form GSTR 2A figures with the former being higher than the latter.
Ref: (THE ASSISTANT COMMISSIONER OF STATE TAX BALLYGUNJGE CHARGE & ORS. Vs. SUNCRAFT ENERGY PRIVATE LIMITED & ORS. Petition(s) for Special Leave to Appeal (C) No(s).27827-27828/2023 decided on 14.12.2023 (SC)).