GSTAT Cuttack says Retrospective GST Cancellation Cannot Automatically Deny ITC

A supplier's registration was retrospectively cancelled on the ground that it was non-existent, and the recipient's ITC was denied without independent verification of the underlying transactions. GSTAT held that retrospective cancellation alone cannot establish that supplies were fictitious or that the recipient participated in wrongdoing. The recipient must substantiate ITC eligibility through evidence of the actual transaction and receipt of goods. Once such evidence is produced, the department must examine and verify it. The Tribunal also found that Section 74 had been invoked mechanically, without establishing fraud or wilful misstatement, and directed determination under Section 73 through Section 75(2).