The Hon’ble Supreme Court in Additional Commissioner Grade 2 & Anr. v. M/s Safecon Lifescience Private Limited [SLP (C) No. 23993 of 2026 dated July 17, 2026] dismissed the Special Leave Petition filed by the Revenue against the judgment of the Hon’ble Allahabad High Court in M/s Safecon Lifescience Private Limited v. Additional Commissioner Grade 2 and Another [Writ Tax No. 389 of 2023 dated September 09, 2025], thereby affirming that proceedings under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (“the UPGST Act”) cannot be initiated to deny Input Tax Credit (“ITC”) to a bona fide purchaser who has duly established the genuineness of the transaction through tax invoices, e-way bills, transport documents, payment through banking channels and filing of returns, merely on the ground that the registration of the supplier was subsequently cancelled or that irregularities were alleged in the supplier’s own upstream purchases, in the absence of any finding of fraud, wilful misstatement or suppression of facts to evade tax on the part of the recipient.
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