Anshul Garg and Associates

03/12/2025

🛑 BIG RELIEF FROM SUPREME COURT FOR TRADERS & MSMEs 🛑

The Supreme Court of India has held that Input Tax Credit (ITC) cannot be denied to a genuine purchaser just because the supplier failed to deposit VAT with the Government.

📌 Case: Commissioner, Trade & Tax Dept. vs. Shanti Kiran India Pvt. Ltd. (Oct 2025)
📌 What the SC said:
• If the supplier was registered at the time of sale
• Buyer has valid invoices
• Goods were actually purchased
• And there is no fraud or collusion

👉 Then ITC must be allowed.
👉 The buyer cannot be punished for the supplier’s default.

This is a MAJOR precedent protecting honest dealers from arbitrary ITC denial.
Even though the ruling is under VAT, it will strongly help in similar disputes under GST too.

26/11/2025

📢 GST Update: Important Legal Development on ITC & Retrospective Cancellation

The Hon’ble Supreme Court of India has admitted a Special Leave Petition in Roshan Sharma v. Deputy Commissioner of Revenue, State Tax & Anr. (SLP (C) No. 31296/2025) and stayed the High Court’s order denying Input Tax Credit (ITC), raising a critical question: Can ITC be denied simply because the supplier’s GST registration was cancelled retrospectively, even though it was valid at the time of supply? 

This is not just about one case — recent judgments by various High Courts (e.g., Himachal Pradesh, Calcutta) have held that retrospective GST registration cancellation does not automatically disqualify a buyer’s ITC, provided the transaction was genuine, payment was made, goods were received, invoices and e-way bills are in order. 

Key take-aways for businesses:
• The burden lies on authorities to examine genuineness — cancellation alone is not enough for denial. 
• Maintain clean records — tax invoices, delivery challans, payments, GSTR returns, e-way bills — to support your ITC claims. 
• If you face a demand notice or ITC reversal: respond promptly, request a hearing, and cite these precedents. 

🛡️ For genuine buyers acting in good faith — this could be a major precedent affirming that your hard-earned ITC rights are protected, even if a supplier’s GST registration was later cancelled.

Anshul Garg Advocate
9876000727

04/11/2025

📢 Big Relief from Allahabad High Court for Genuine Taxpayers! 🏛️

In a landmark judgment — Singhal Iron Traders vs Additional Commissioner [Writ Tax No. 1356/2022; decided on 26 Sept 2025], the Allahabad High Court has quashed ITC reversal orders passed merely because the supplier’s GST registration was cancelled after the transaction.

👉 The assessee had purchased iron scrap against valid tax invoices & e-way bills, with payments made through banking channels.
👉 The supplier was registered and active at the time of sale and had filed GSTR-1 & GSTR-3B returns showing the tax payment.

Yet, the Department invoked Section 74 alleging wrongful ITC—solely on the ground of later cancellation of the supplier’s registration.

⚖️ The Court held:
✅ ITC cannot be denied to a bona fide purchaser for no fault of their own.
✅ Section 74 applies only in cases of fraud, wilful misstatement, or suppression.
✅ Authorities acted on “borrowed information” without independent inquiry.
✅ No evidence of fake invoices or non-existent movement of goods.

🔹 Result: The impugned orders were quashed and ITC restored to the assessee.

💬 A welcome judgment reaffirming that genuine buyers cannot be punished for sellers’ later defaults or cancellations.

16/10/2025

🚀 Big News for MSMEs: MSME ODR Portal Launched! 💼💻

The Government of India has launched the MSME Online Dispute Resolution (ODR) Portal — a revolutionary digital platform to help MSMEs resolve disputes including delayed payments, recovery claims, and contractual issues swiftly and transparently.

⚙️ What You Can Do on the Portal:
✅ File cases for payment recovery from buyers
✅ Resolve contractual disputes online
✅ Track the entire process digitally
✅ Avoid lengthy legal procedures and save time
✅ Get faster justice under the MSMED Act, 2006

🖥️ Access the Portal Here:
👉 https://odr.msme.gov.in/ #/

🌐 How It Helps:

Simplifies dispute filing and resolution

Reduces cost and time

Ensures transparency and fairness

Strengthens MSME confidence and cash flow

💬 Calling all MSME entrepreneurs — make full use of this new initiative to recover your dues and resolve disputes with ease!

12/10/2025

🚨 BREAKING: Supreme Court Upholds ITC for Genuine Buyers Despite Seller’s Tax Default 🚨

In a significant ruling, the Supreme Court of India has upheld the Delhi High Court’s decision, affirming that bona fide purchasers cannot be denied Input Tax Credit (ITC) under the Delhi Value Added Tax Act, 2004 (DVAT Act), even if the selling dealer fails to deposit the collected tax with the government.

📜 Case Reference:
The Commissioner of Trade & Taxes, Delhi vs. M/s Shanti Kiran India (P) Ltd.
Civil Appeal Nos. 2042‑2047 of 2015
Judgment Date: 9th October 2025
Coram: Justice Manoj Misra & Justice Nongmeikapam Kotiswar Singh

🧾 Key Extract from the Supreme Court’s Judgment:

“In light thereof, as we find that there is no dispute regarding the selling dealer being registered on the date of transaction and neither the transactions nor invoices in question have been doubted, based on any inquiry into their veracity, we do not find a good reason to interfere with the order of the High Court directing for grant of ITC benefit after due verification.”
— The Commissioner of Trade & Taxes, Delhi vs. M/s Shanti Kiran India (P) Ltd.

⚖️ Legal Principle Affirmed:
• Genuine Purchasers Protected: If a purchaser has valid tax invoices from a registered dealer and the transactions are bona fide, ITC cannot be denied solely because the seller defaults in depositing the tax.
• Seller’s Responsibility: The primary liability to pay tax rests with the seller. The department’s remedy lies in recovering the tax from the defaulting seller, not from the purchaser.

📌 Relevance Under GST:

Although this judgment pertains to the DVAT regime, the principle established is equally applicable under the Goods and Services Tax (GST) framework. GST taxpayers should be aware that they cannot be penalized for a seller’s non-compliance without evidence of fraud or collusion.

💬 Message to Taxpayers:
Maintain genuine transactions and proper documentation. The law supports honest taxpayers!

18/09/2025

📢 Good News for Employers!
With SPREE 2025, ESIC registration is now simple & hassle-free:
✅ Registration valid from employer’s declared date
✅ No past contributions or inspections
✅ No retrospective penalties

A big step towards easy compliance & better worker welfare! 💼👷‍♂

18/09/2025

🚨 Good News for GST Taxpayers! 🚨

The GST Appellate Tribunal (GSTAT) is finally coming into action 👇

✅ Appeals will start being accepted by September 2025
✅ Hearings will begin before December 2025
✅ For past cases – appeals can be filed till 30th June 2026 (if the order was given before 1st April 2026)
✅ For new cases – appeals must be filed within 3 months from receiving the order

👉 The main bench of GSTAT will also handle advance ruling disputes – so rulings will now be more consistent and reliable.

🎯 Overall, this will make GST dispute resolution faster, fairer, and more transparent, giving businesses greater peace of mind.

13/08/2025

https://youtu.be/pLnN6eRDyhA?si=hjb4HbzXuelP1Ghe

Webinar on “MSME Recovery: A Professional Opportunity” Date: Friday, 8th August 2025 Time: 4:00 PM to 5:30 PM IST Speaker:Mr. Anshul GargModerator: Mr. Divay...

12/08/2025

🔥 BIG FRAUDS BEWARE – SMALL BIZ RELIEF! 🔥

India’s GST watchdog DGGI is shifting gears —
✅ Hunting down big tax evaders causing massive revenue loss
✅ Sparing small businesses from harassment over minor errors

💡 What’s Changing?
• Focus on fake companies, bogus invoices & high-risk sectors
• Less focus on petty disputes & classification errors
• More time & resources for real fraud detection

📊 The Numbers Tell the Story:
• ₹7 Trillion GST evasion found in 5 years 😱
• ₹2.23 Trillion in FY25 alone
• ₹96,799 crore voluntarily paid after detection

Why It Matters:
👉 Fairer playing field for honest businesses
👉 More growth, less litigation
👉 Boosts investor & market confidence

💬 Finally, GST enforcement that targets the sharks, not the small fry!

02/08/2025

🚨 BIG RELIEF FOR MSMEs – RECOVERY ORDERS NOW ENFORCEABLE VIA DCs UNDER REVENUE ACT! 🚨
🗓️ As per Dainik Bhaskar | 02.08.2025

In a major reform under the MSME Facilitation Council (Amendment) Rules, 2025, District Collectors (DCs) have now been empowered to recover unpaid dues of MSMEs like arrears of land revenue!

⚖️ What this means:
✅ Recovery of MSEFC awards will no longer be stuck in long ex*****on battles
✅ DCs can now enforce recovery like they do for government dues
✅ Relief for lakhs of small businesses struggling to get paid

📜 The new rules were notified on 11 July 2025 and are seen as a game-changer in enforcing delayed payment awards.

🧾 Based on Rule 21H(3) under the amended MSME Rules, DCs now have direct power to recover dues once the Facilitation Council has passed an order.

📍This move removes a major hurdle for entrepreneurs — turning orders into actual money in hand!

Let’s hope implementation is just as strong as the policy 💪

26/07/2025

🚨 SUPREME COURT CLEARS AIR ON MSME DISPUTES & LIMITATION ACT 🚨

⚖️ In a landmark July 2025 ruling (Sonali Power Equipments Pvt. Ltd. v. MSEB), the Supreme Court has delivered a major verdict on how limitation laws apply to MSMED Act proceedings:

✅ Conciliation under Section 18(2) – Limitation Act does NOT apply!
➡️ Even old, time-barred claims can be settled through the MSME Facilitation Council.
➡️ If a settlement is reached, it’s valid and enforceable.

⛔ Arbitration under Section 18(3) – Limitation Act DOES apply!
➡️ Claims beyond 3 years from the date of default cannot proceed to arbitration.
➡️ MSMEs must act within the limitation period to get enforceable awards.

🧾 Disclosure of dues in the buyer’s balance sheet under Section 22 MSMED Act does not automatically extend limitation unless it qualifies as acknowledgment under law.

📄 Read Full Supreme Court Judgment (PDF):
👉 https://lnkd.in/gjYPaD9y

💡 Impact:
MSMEs can still recover old dues through conciliation, but must be cautious when pursuing arbitration beyond the limitation period.

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