#taxalert #landmarkjudgments What is the validity of Buyer's ITC on purchase from a supplier, later declared non-existent? Calcutta High Court quashed the order for rejecting ITC & grossly ignoring documents submitted by the buyer to substantiate his input claim. NIRANJAN PAUL vs. ASSISTANT COMMISSIONER OF STATE TAX, SILIGURI CHARGE [WPA 707 of 2025; 08-Apr-2025 :: 2025(4) TAXREPLY 13442] The court set aside and quashed the orders of the adjudicating and appellate authorities that had disallowed the petitioner’s claim of Input Tax Credit (ITC) on supplies from a supplier later declared non-existent. It found that both authorities failed to consider crucial documents submitted by the petitioner evidencing actual movement of goods, payment of taxes, and filing of GST returns by the supplier, and did not verify compliance with statutory requirements for availing ITC. The supplier’s registration was valid at the time of supply. The matter was remitted for fresh adjudication, directing the authority to scrutinize the petitioner’s evidence and pass a reasoned order within six weeks. The petitioner challenged the decisions of the GST Authorities, which denied his claim for ITC related to supplies made by his supplier. The authorities argued that the supplier was non-existent and non-operational at the declared place of business during the relevant period.