M/s Sane Retails Private Limited v. The State of Bihar
GST – Input Tax Credit – Section 16(2)(b), Central Goods and Services Tax Act, 2017 – physical receipt of goods by purchasing dealer not mandatory
Case brief
What is this about?
Input Tax Credit; Section 16(2)(b) CGST Act; deemed receipt of goods; delivery by supplier directly to end consumer on dealer's instruction; physical movement of goods not mandatory; Circular No. 241/35/2024-GST dated 31.12.2024; Section 73(9) demand; Section 107 appeal; total non-application of mind; remand to Deputy Commissioner of State Tax, Patliputra Circle, Patna; Patna High Court; bunch of 24 CWJC matters; Aastha Enterprises; State of Karnataka v. Ecom Gill; SAJ Food Products distinguished.
What did the court decide?
Writ petitions allowed; impugned orders dated 14.01.2023 (Annexure-P14) and 07.10.2023 (Annexure-P1) set aside in the lead matter and impugned orders in each of the connected petitions set aside; all 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) of the CGST Act (printed in the judgment as 'Rule 16 (2) (b)') limited to whether there was any memorandum of understanding between the dealer and the supplier and intimation to the end consumer regarding receipt/delivery of goods, within six months; petitioners to cooperate with the authorities.