The Hon’ble Gauhati High Court in M/s Metal Syndicate and Another v. The Union of India & Ors. [W.P. (C) No. 2960/2026 dated June 05, 2026] set aside the Order-in-Original and the Order-in-Appeal confirming GST demand of Rs. 78,70,952/- along with interest and equivalent penalty, and held that a bona fide purchasing dealer cannot be denied Input Tax Credit (“ITC”) merely on account of the supplier’s failure to deposit the tax collected with the Government. The Court reiterated that the Department’s remedy in such circumstances lies against the defaulting supplier and not against the genuine recipient, who has discharged all statutory obligations.
