SC dismissed the department’s SLP against Calcutta HC judgment in the case of Suncraft Energy

This is unless there is an exceptional case, such as the supplier going missing or a situation where it becomes impossible for the department to collect tax from the supplier. Until there is a remote chance of recovering the tax from the supplying dealer, the department shall not deny ITC to the purchasing dealer.

In the context of recovering the tax from the supplying dealer, the department shall not levy any penalty or deny ITC to the purchasing dealer unless there is a compelling circumstance, such as the supplier being untraceable or any situation hindering the department from collecting tax from the supplier.

The order of the dismissal of the SLP and the affirmation of the Calcutta High Court judgment is a significant victory for honest taxpayers.

The Department filed an Special Leave Petition (SLP) in the Supreme Court, challenging the decision of the Calcutta High Court (Diary No. 44241/2023).

It is reported that the SLP has been dismissed, and the Calcutta High Court judgment has been upheld, marking a significant victory for honest taxpayers. The official copy of the judgment is awaited, and further details will be available upon its release.