Decided 28 September 2026. The Lucknow Bench of GSTAT has dismissed a department appeal against ITC relief of Rs 76,750.20 granted to L&T Technology Services on purchases from a supplier whose registration was later cancelled with retrospective effect from 01.07.2017. The Tribunal held that retrospective cancellation, by itself, does not prove that the transactions were fictitious, and the department offered no specific evidence.
Case at a glance
| Case | Revenue v. L&T Technology Services Limited |
| Forum | GSTAT, Lucknow Bench, Court I |
| Appeal No. | APL/71/LCK/2026 |
| Date of order | 28 September 2026 |
| Period | FY 2019-20 |
| Relief upheld | ITC of Rs 76,750.20 |
| Result | Department's appeal dismissed |
Facts of the case
The respondent took ITC in 2019-20 on purchases from Edge Techunified Pvt. Ltd., whose registration was later cancelled suo motu from 01.07.2017. The original authority disallowed ITC of Rs 3,14,326 under section 73.
The first appellate authority allowed Rs 76,750.20 on two invoices (dated 10.11.2019 and 30.12.2019), noting the supplier's GSTIN status was shown as 'amended' on the portal, updated on 24.07.2020, and upheld the rest. The department appealed against this relief.
Issue before the Tribunal
Can ITC be denied solely because the supplier's registration was cancelled retrospectively, without evidence that the specific transactions were bogus?
What the Tribunal held
- The first appellate authority granted only limited relief based on specific invoices and the amendment reflected in GST records (B2BA), keeping the rest of the demand.
- No specific finding or evidence showed that the transactions behind the Rs 76,750.20 were fictitious or that goods were not received.
- Differences between GSTR-9 and GSTR-2A do not by themselves show the relief was wrong; that ground was not part of the original section 73 proceedings and is barred by section 75(7).
- The department did not show any specific error of fact or law, so the appeal was dismissed.
Practical takeaways for taxpayers
- When a supplier's GSTIN is cancelled retrospectively, gather invoices, payment proof, delivery records and portal amendments to show genuine purchases.
- Check GSTR-2A amendment tables (B2BA) for corrections that support your claim.
- Object to new grounds raised by the department that were not in the show cause notice.
Frequently asked questions
Does retrospective cancellation of supplier's GSTIN automatically deny ITC?
No. GSTAT Lucknow held it does not by itself prove the transactions were bogus.
What evidence helped the taxpayer?
Specific invoices and the supplier's amended details reflected on the GST portal.
Facing a similar GST dispute?
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This summary is based on the order of the GST Appellate Tribunal, Lucknow Bench (Court I) in Appeal No. APL/71/LCK/2026. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.