Denial of ITC on cancellation of a supplier’s registration

The Supreme Court refused to interfere where the High Court had held that once actual movement of goods and payment of tax are proved by the purchasing dealer, proceedings alleging fraud or suppression are not justified merely because the supplier’s registration was later cancelled. This is a major taxpayer-friendly ruling that protects honest buyers.

Safecon Lifesciences Pvt Ltd (Supreme Court of India)

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