Assistant Commissioner, State Tax Vs Suncraft Energy Private Limited

The case involved M/s. Suncraft Energy Private Limited ("the Respondent") and the Revenue Department ("the Petitioner"), regarding the reversal of excess input tax credit availed in Form GSTR-3B as compared to Form GSTR-2A. The Respondent faced a demand notice to reverse the excess ITC claimed based on a mismatch between these forms. The Respondent contested the demand, stating that they had fulfilled all the conditions under Section 16(2) of the CGST Act and had paid the taxes to the supplier before availing the ITC. The Hon’ble Calcutta High Court set aside the order of reversing excess credit availed and held that the demand notice could not be sustained without proper inquiry into the actions of the supplier. The Adjudicating Authority had passed an order demanding payment of tax, but the High Court overturned this decision. Upon appeal, the Hon’ble Supreme Court dismissed the Special Leave Petition and upheld the Calcutta High Court's decision.