{"id":6762,"date":"2025-11-12T17:43:54","date_gmt":"2025-11-12T12:13:54","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6762"},"modified":"2025-11-12T17:43:54","modified_gmt":"2025-11-12T12:13:54","slug":"no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","title":{"rendered":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000410075\/no-proceedings-against-recipient-merely-due-to-post-transaction-cancellation-of-suppliers-registration-hc\">Singhal Iron Traders vs. Additional Commissioner (2025) 36 Centax 36 (All.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Piyush Agrawal<\/strong>, J.<\/li>\n<li><strong>Shri Suyash Agarwal<\/strong>, Sr. Adv., for the Petitioner.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, a registered dealer engaged in trading iron scrap, effected purchases from a registered supplier whose GST registration was valid at the time of transactions. Subsequently, proceedings were initiated under section 74 of the CGST Act and the Uttar Pradesh GST Act, alleging wrongful availment of ITC and proposing penalty on the ground that the supplier\u2019s registration had been cancelled and no business activity was undertaken. A show cause notice was issued, to which the assessee furnished a detailed reply, contending that the supplier was duly registered at the time of transaction, had filed GSTR-1 and GSTR-3B returns, and discharged applicable tax liability. Despite these submissions, an order in Form DRC-07 was passed confirming reversal of ITC and imposition of penalty, which was upheld in appeal. The matter was accordingly placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that it was undisputed that the supplier had filed returns in Form GSTR-1 and GSTR-3B, and the latter could not have been generated without payment of due tax. It observed that the authorities failed to verify whether the supplier existed and was active at the time of the transactions, and had instead proceeded solely on the basis of post-cancellation information. Once the supplier\u2019s tax had been paid and reported in GSTR-1, no adverse inference could be drawn against the assessee merely because of subsequent cancellation of the supplier\u2019s registration. The Court held that such post-facto cancellation could not justify denial of ITC or levy of penalty, and accordingly quashed the impugned orders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Singhal Iron Traders vs. Additional Commissioner (2025) 36 Centax 36&hellip;<\/p>\n","protected":false},"author":8,"featured_media":6775,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-6762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC<\/title>\n<meta name=\"description\" content=\"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC\" \/>\n<meta property=\"og:description\" content=\"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\" \/>\n<meta property=\"og:site_name\" content=\"Centax-Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/centaxindia\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-12T12:13:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"920\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kriti Sharma\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kriti Sharma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\"},\"author\":{\"name\":\"Kriti Sharma\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\"},\"headline\":\"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC\",\"datePublished\":\"2025-11-12T12:13:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\"},\"wordCount\":289,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg\",\"articleSection\":[\"GST\",\"News\",\"Case Chronicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\",\"name\":\"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg\",\"datePublished\":\"2025-11-12T12:13:54+00:00\",\"description\":\"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg\",\"width\":920,\"height\":540},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.centaxonline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"name\":\"Centax-Blogs\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\",\"name\":\"Centax-Blogs\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"width\":536,\"height\":133,\"caption\":\"Centax-Blogs\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/centaxindia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\",\"name\":\"Kriti Sharma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"caption\":\"Kriti Sharma\"},\"url\":\"https:\/\/www.centaxonline.com\/blog\/author\/kriti\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC","description":"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","og_locale":"en_US","og_type":"article","og_title":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC","og_description":"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.","og_url":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","og_site_name":"Centax-Blogs","article_publisher":"https:\/\/www.facebook.com\/centaxindia","article_published_time":"2025-11-12T12:13:54+00:00","og_image":[{"width":920,"height":540,"url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg","type":"image\/jpeg"}],"author":"Kriti Sharma","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kriti Sharma","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#article","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc"},"author":{"name":"Kriti Sharma","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270"},"headline":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC","datePublished":"2025-11-12T12:13:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc"},"wordCount":289,"commentCount":0,"publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg","articleSection":["GST","News","Case Chronicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","url":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc","name":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg","datePublished":"2025-11-12T12:13:54+00:00","description":"High Court rules ITC can\u2019t be denied or penalty imposed merely due to post-transaction cancellation of supplier\u2019s GST registration; orders against buyer quashed.","breadcrumb":{"@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#primaryimage","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/11\/2.-No-Proceedings-Against-Buyer-If-Suppliers-Registration-Cancelled-Later.jpg","width":920,"height":540},{"@type":"BreadcrumbList","@id":"https:\/\/www.centaxonline.com\/blog\/no-proceedings-against-buyer-if-suppliers-registration-cancelled-later-hc#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.centaxonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"No Proceedings Against Buyer If Supplier\u2019s Registration Cancelled Later | HC"}]},{"@type":"WebSite","@id":"https:\/\/www.centaxonline.com\/blog\/#website","url":"https:\/\/www.centaxonline.com\/blog\/","name":"Centax-Blogs","description":"","publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.centaxonline.com\/blog\/#organization","name":"Centax-Blogs","url":"https:\/\/www.centaxonline.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","width":536,"height":133,"caption":"Centax-Blogs"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/centaxindia"]},{"@type":"Person","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270","name":"Kriti Sharma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","caption":"Kriti Sharma"},"url":"https:\/\/www.centaxonline.com\/blog\/author\/kriti"}]}},"_links":{"self":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/6762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/comments?post=6762"}],"version-history":[{"count":3,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/6762\/revisions"}],"predecessor-version":[{"id":6766,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/6762\/revisions\/6766"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media\/6775"}],"wp:attachment":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media?parent=6762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/categories?post=6762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/tags?post=6762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}