Metal Syndicate v. Union of India
In favour of the assessee
The ruling in brief
Metal Syndicate filed WP(C) No. 2960 of 2026 before the Gauhati High Court, decided 5 June 2026, against denial of input tax credit on purchases from registered suppliers. The assessee paid GST through banking channels, filed required returns, and availed credit in good faith, but the revenue denied benefit solely because suppliers failed to remit tax. Under section 16 and Rule 37A, Justice Kardak Ete set aside impugned orders and held the department's remedy is against defaulting suppliers unless material indicates collusion or lack of bona fides by the recipient. Liberty was reserved to reopen if such evidence later surfaced. Outcome favoured the assessee. Aligns with sibling Gauhati judgments separating supplier default from recipient liability in bona fide trade. This summary is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.16 — Eligibility and conditions for taking input tax credit.
- CGST Rules R.37A — Rule 37A of the Central Goods and Services Tax Rules, 2017.
Source documents
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