[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  CA Bimal Jain [@BimalGST](/creator/twitter/BimalGST) on x 133.6K followers Created: 2025-07-21 14:01:37 UTC 🔥📛 Calcutta HC stays ITC recovery against recipient basis insolvency RP approved against supplier ➡️ The Calcutta High Court restrained Revenue authorities from recovering Input Tax Credit (ITC) from the recipient (Petitioner) due to the supplier’s (M/s Cosmic Ferro Alloys Ltd.) failure to remit GST, especially as the supplier had undergone insolvency proceedings under the IBC. ➡️ The Court noted that the supplier's liabilities were extinguished through a Resolution Plan approved by the NCLT, and the Revenue had not lodged any claims during the Corporate Insolvency Resolution Process (CIRP). ➡️ The Petitioner argued they should not be penalized under Section 16(2)(c) of the CGST Act (which mandates tax payment by the supplier as a condition for ITC eligibility) due to the supplier’s tax default being a result of insolvency, not the Petitioner’s fault. ➡️ The High Court directed the Revenue to disclose records showing whether it took any steps (e.g., filing claims during CIRP) to safeguard its interest, while requiring the Petitioner to produce the NCLT-approved Resolution Plan. ➡️ The Court ordered a XX% deposit from the Petitioner within four weeks and granted a stay on the recovery order by the Appellate Authority pending further hearing. ✔️ Calcutta HC - M/s Lalwani Ferro Alloys ltd. Vs. Assistant Commissioner, CGST & CX [WPA 13913 of 2025] #GST #GSTUpdate #GSTCaseUpdate #AdvBimalJain #GSTwithBimalJain #a2ztaxcorpllp #GSTUpdate #GSTcaseLaw XXXXX engagements  **Related Topics** [gst](/topic/gst) [tax bracket](/topic/tax-bracket) [chapter 11](/topic/chapter-11) [$itcbo](/topic/$itcbo) [hc](/topic/hc) [Post Link](https://x.com/BimalGST/status/1947295904433631699)
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CA Bimal Jain @BimalGST on x 133.6K followers
Created: 2025-07-21 14:01:37 UTC
🔥📛 Calcutta HC stays ITC recovery against recipient basis insolvency RP approved against supplier
➡️ The Calcutta High Court restrained Revenue authorities from recovering Input Tax Credit (ITC) from the recipient (Petitioner) due to the supplier’s (M/s Cosmic Ferro Alloys Ltd.) failure to remit GST, especially as the supplier had undergone insolvency proceedings under the IBC.
➡️ The Court noted that the supplier's liabilities were extinguished through a Resolution Plan approved by the NCLT, and the Revenue had not lodged any claims during the Corporate Insolvency Resolution Process (CIRP).
➡️ The Petitioner argued they should not be penalized under Section 16(2)(c) of the CGST Act (which mandates tax payment by the supplier as a condition for ITC eligibility) due to the supplier’s tax default being a result of insolvency, not the Petitioner’s fault.
➡️ The High Court directed the Revenue to disclose records showing whether it took any steps (e.g., filing claims during CIRP) to safeguard its interest, while requiring the Petitioner to produce the NCLT-approved Resolution Plan.
➡️ The Court ordered a XX% deposit from the Petitioner within four weeks and granted a stay on the recovery order by the Appellate Authority pending further hearing.
✔️ Calcutta HC - M/s Lalwani Ferro Alloys ltd. Vs. Assistant Commissioner, CGST & CX [WPA 13913 of 2025]
#GST #GSTUpdate #GSTCaseUpdate #AdvBimalJain #GSTwithBimalJain #a2ztaxcorpllp #GSTUpdate #GSTcaseLaw
XXXXX engagements
Related Topics gst tax bracket chapter 11 $itcbo hc