A trader’s iron scrap was seized by GST authorities due to a fraudulent supplier. Despite the buyer’s due diligence (GSTIN verification, valid invoices, bank transactions), the authorities confiscated the goods after suspending the supplier’s registration. The buyer argued their innocence and procedural errors by authorities. The court ruled that authorities must follow proper procedures (Section 129 before 130) and cannot penalize a genuine buyer for a supplier’s fraud, emphasizing due diligence limitations.
Source: rmpsco.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
