A trader’s iron scrap was seized by GST authorities due to a fraudulent supplier. Despite the buyer’s due diligence (GSTIN verification, valid invoices, bank transactions), the authorities confiscated the goods after suspending the supplier’s registration. The buyer argued their innocence and procedural errors by authorities. The court ruled that authorities must follow proper procedures (Section 129 before 130) and cannot penalize a genuine buyer for a supplier’s fraud, emphasizing due diligence limitations.
Source: rmpsco.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "India"
- Ahmedabad Customs Inspector Arrested for Alleged ₹2 Crore IGST Credit Fraud in Export Scam
- ISF Urges GST Cut, Women-Specific Tax Slab to Boost Formal, Inclusive Employment in India
- Punjab Software Engineer Arrested for Designing Fake GST Portal in Multi-State Tax Fraud Bust
- Supreme Court to Decide if Industrial Felt is ‘Fabric’ or ‘Machinery Part’ for VAT Purposes
- Supreme Court Rules: “Parts” Must Functionally Integrate into Machinery, Rejecting End-Use Claims
