📰 𝗔𝗻𝗱𝗵𝗿𝗮 𝗣𝗿𝗮𝗱𝗲𝘀𝗵 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗕𝘂𝘆𝗲𝗿 𝗠𝘂𝘀𝘁 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵 𝗢𝘄𝗻 𝗖𝗿𝗲𝗱𝗲𝗻𝘁𝗶𝗮𝗹𝘀 𝗶𝗻 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀

📢 Court’s Statement: "The purchasing dealer has to establish their own credentials and not those of the supplier."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Arhaan Ferrous and Non-Ferrous Solution Pvt Ltd vs Deputy Assistant Commissioner • 𝗖𝗼𝘂𝗿𝘁: Andhra Pradesh High Court • 𝗗𝗮𝘁𝗲: 03-Aug-2023

𝗜𝘀𝘀𝘂𝗲: The case involved the detention of goods and vehicles on the grounds that the supplier had no registered place of business. The core question was whether the Proper Officer was justified in confiscating the goods purchased by Arhaan Ferrous.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The petitioner argued that the confiscation was unjustified as it relied solely on the supplier's status, without considering the buyer's credentials. The purchasing dealer contended that they had established proper documentation for the transaction.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Andhra Pradesh High Court held that while the Proper Officer could initiate proceedings against the supplier under Section 130 of the GST Act due to the supplier's lack of a registered business address, confiscating the buyer's goods was not justified based solely on the supplier's issues. The court emphasized that the purchasing dealer must provide authenticated documents to establish the legitimacy of their transactions but should not be held accountable for the supplier's business activities or GST registration status.

📜 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: This ruling clarifies the obligations of purchasing dealers in GST transactions, reinforcing that buyers must establish their own credentials without being burdened by the supplier’s compliance issues. It underscores the importance of due diligence on the part of buyers while protecting them from arbitrary confiscation based on the supplier's alleged infractions. Team GSTpanacea 7503031378