1. Case Title

M/s Himalaya Communication Pvt. Ltd. vs. Union of India & Others

CWP No. 8809 of 2025, decided on 6th June 2025

Before: Hon’ble Mr. Justice Tarlok Singh Chauhan and Hon’ble Mr. Justice Sushil Kukreja
High Court of Himachal Pradesh, Shimla

2. Summary of Facts

The petitioner, M/s Himalaya Communication Pvt. Ltd., challenged the denial of Input Tax Credit (ITC) for certain transactions by the GST authorities. The primary contention was that the petitioner had paid tax to the supplier, possessed all necessary documentation, and the supplier had filed its GSTR-3B returns for the relevant period. However, the ITC claim was rejected solely because the supplier's GST registration had been cancelled retrospectively.

3. Key Issues

• Whether the denial of ITC solely on the basis of retrospective cancellation of the supplier’s GST registration is valid.
• Whether the authorities properly examined the genuineness of the underlying transaction and associated documentation before issuing the impugned orders.

4. Decision/Outcome

The High Court set aside the impugned orders dated 10.01.2025 and 31.03.2024 issued by Respondent Nos. 3 and 4. The matter was remanded to the Adjudicating Authority with a direction to re-examine all relevant documents before taking any action. The parties were directed to appear before the authority on 20.06.2025. The petition was accordingly disposed of.

5. Reasoning behind the Decision

The Court observed that no material evidence or reasoning was placed on record to show that the Assessing Officer or the Appellate Authority had verified the genuineness of the transaction. Instead, they had proceeded straight to issuing notice under Section 16(2) of the CGST Act. The Court emphasized that a fair adjudication requires scrutiny of all relevant documents to determine the legitimacy of the transaction, which was lacking in this case.

6. Impact/Implications of the Decision