Tirupati Balaji Traders vs. Union Of INDIA
Held
The Court, relying on precedents, held that the right to avail input tax credit is conditional. ITC cannot be granted unless the tax collected from the purchasing dealer has been actually paid to the exchequer by the supplying dealer.
Facts
The petitioner challenged the denial of input tax credit (ITC) despite having paid the tax amount to the supplying dealer, who failed to remit it to the government. The petitioner argued that denying ITC in such a situation would negate other CGST/SGST Act provisions and the Insolvency and Bankruptcy Code, 2016.
Key Issues
Can a purchasing dealer claim input tax credit when the tax has been paid to the supplying dealer but not remitted to the government, and is the right to ITC conditional on actual remittance?
Sections Cited
Section 16(2)(c), Section 75(12), Section 76, Section 79, Section 82, Section 83, Section 88
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 24TH DAY OF JULY 2024 / 2ND SRAVANA, 1946 WP(C) NO. 16259 OF 2024 PETITIONER: TIRUPATI BALAJI TRADERS, REPRESENTED THROUGH ITS MANAGING PARTNER, MAHESH KUMAR CHANGOIWALA 66/2321, GROUND FLOOR, ARANGATH ROAD, ERNAKULAM, COCHIN, PIN – 682 018. BY ADVS. NITISH SATHESH SHENOY SHERRY SAMUEL OOMMEN SUKUMAR NAINAN OOMMEN RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NO 137, NORTH BLOCK, NEW DELHI, PIN – 110 001. 2 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF REVENUE SECRETARIAT, KERALA, PIN – 695 001. 3 THE ADDITIONAL COMMISSIONER, OFFICE OF THE COMMISSIONER, CENTRAL TAX & CENTRAL EXCISE, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, PIN – 682 018. 4 THE DEPUTY COMMISSIONER, TAX PAYER SERVICES, CENTRAL TAX & CENTRAL EXCISE, 4TH FLOOR, GST BHAVAN, KATHRIKADAVU, KALOOR, KOCHI, PIN – 682 017. 5 THE ASSISTANT COMMISSIONER, CENTRAL TAX & CENTRAL EXCISE, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, PIN – 682 018. WP(C) NO. 16259 OF 2024 2 6 THE SUPERINTENDENT, RANGE - 6, 4TH FLOOR, GST BHA
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