In the High Court of Madhya Pradesh at INDORE BEFORE Hon’ble Shri Justice Vivek Rusia & Hon’ble Shri Justice Hirdesh on the 13th of June, 2023 – Writ Petition No. 14297 of 2020

Petitioner-Agrawal and Brothers Respondent – Union of India, Western Railway Division DRM Office, Ratlam and Office of the Superintendent, CGST, and 2. Central Excise, Range-I Division Ratlam, Court- Madhya Pradesh (Indore).

Every buyer was aggrieved by the defaults of suppliers. The department was trying to recover it from the recipients but there was no way out.

This case addressed the most detrimental area of GST. Why should I pay when my supplier committed a mistake? There is already a long litigation related to the right of the department to recover it from the buyer. But there is another side also. What if I want to recover it from the supplier?

Taxation law can’t interfere between the two parties doing business with each other. But what’s the remedy then?

The court said-

“It is a settled law that no one cannot be made to suffer for the fault of another. Since this deposit of GST was not reflected in the account of the petitioner, therefore, a show cause notice was issued and the petitioner had to pay the GST to the department with interest again in order to avoid the cancellation of GSTIN, therefore, he is entitled to seek the return of Rs.13,38,544/- from the respondent No.1.”

In this case, the court said that yes you can recover the amount from the supplier. This case can be of great help for the buyers suffering from the default of suppliers in GST.
The decision is more of a fact and should be used carefully.

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