Section 16 of the CGST Act, 2017 — Input Tax Credit –Tax not paid by the Supplier-- The petitioner challenged the SCN dated 29.12.2022, on the ground that the condition requiring the buyer to prove the payment of tax by the supplier of goods and services is unreasonable and beyond the control of the buyer. The petitioner has paid the tax to their seller, which is not disputed by the respondents. On account of the cancellation of registration of the seller, the respondents have issued the impugned SCN. The court observed that in the decisions relied upon, both the Hon'ble Judges of this Court have consistently held that Section 42 has to be necessarily adhered to by the respondents. But at the stage of SCN, this Court cannot entertain this petition.

Held that:- The Hon’ble High Court directed the petitioner to submit an additional reply raising the contentions that have been raised in this writ petition to the respondents, within a period of three weeks. The respondents after affording a personal hearing to the petitioner, shall pass final orders, on merits and in accordance with law, as expeditiously as possible.