Punjab and Haryana HC says ITC Cannot Be Denied Merely for Supplier Default

In a large batch of GST writ petitions, the Court held that Section 16(2)(c) must operate within the broader statutory framework of Sections 41, 73, 74, 76 and 155 and Rule 37A. A supplier's subsequent or retrospective cancellation, non-payment of tax or a GST alert may trigger investigation, butcannot by itself establish that the recipient's ITC is inadmissible.