M/s Shreyash Retail Private Limited v. The State of Bihar
Case brief
What is this about?
GST Input Tax Credit denial; Section 16(2)(b) CGST deemed receipt of goods; supplier delivering directly to end consumer on dealer's instruction; bill-to-ship-to model; Circular No. 241/35/2024-GST dated 31.12.2024; Rule 36 CGST Rules; Section 155 burden of proof; Section 73(9) demand; Aastha Enterprises distinguished; State of Karnataka v. Ecom Gill Trading distinguished; SAJ Food Products distinguished; remand to Deputy Commissioner of State Tax, Patliputra Circle; six-month time limit; speaking order; Patna High Court 2025; CWJC bunch.
What did the court decide?
Impugned adjudication order dated 14.01.2023 and appellate order dated 07.10.2023 set aside in all the petitions; matters remanded to the Deputy Commissioner of State Tax, Patliputra Circle, Central Division, Pant Bhawan, Bailey Road, Patna, to examine within six months whether any memorandum of understanding existed between dealer and supplier and whether the end consumer was informed, with delivery proof; if materials favour the petitioners the grievance is to be redressed in accordance with law, otherwise a detailed speaking order after notice and explanation; petitioners to cooperate with the authorities.