M/s Utkrisht Trade Solutions Pvt. Ltd. v. The State of Bihar
Case brief
What is this about?
Input Tax Credit (ITC) denial; Section 16(2)(b) CGST Act deemed receipt; physical receipt/movement of goods not mandatory; bill-to-ship-to / third-party delivery to end consumer on dealer's instruction; CGST Circular No. 241/35/2024-GST dated 31.12.2024; Rule 36 CGST Rules; burden of proof Section 155 CGST Act and Section 70 KVAT (Ecom Gill Trading, 2023 SCC OnLine SC 248); Aastha Enterprises CWJC 10359/2023; SAJ Food Products CWJC 15465/2022; Section 73(9) demand and Section 107 appeal; total non-application of mind; set aside and remand to Deputy Commissioner of State Tax, Patliputra Circle, six months; Patna High Court CWJC No. 470 of 2024 with 24 connected writs; decided 11-04-2025.
What did the court decide?
Impugned orders dated 14.01.2023 (Annexure P-14) and 07.10.2023 (Annexure P-1) set aside in all the petitions; matters remanded to the Deputy Commissioner of State Tax, Patliputra Circle, Central Division, Pant Bhawan, Bailey Road, Patna for fresh examination of compliance with Section 16(2)(b) CGST Act — namely existence of any memorandum of understanding between the petitioner-dealer and the supplier and intimation to the end consumer regarding delivery of goods (directly or through transporter) — to be completed within six months; if materials favour the petitioner the grievance is to be redressed in accordance with law, otherwise a detailed speaking order after notice and explanation; petitioners to co-operate with the authorities.