Section 16 of the CGST Act, 2017 — Input Tax Credit — The petitioner challenged the order dated 23.01.2020 reversing the ITC and the Appellate order dated 20.10.2020. The petitioner submitted that GST was deposited timely and all the relevant documents were placed before the authorities. The Appellate Authority dismissed the appeal mainly on the ground that the firm which had supplied the goods to the petitioner's firm its registration was already cancelled and moreover the petitioner has not mentioned any amount for loading and unloading of the goods. The court observed that finding recorded by the first Appellate Authority is cryptic as it only states in its order that the registration of the supplier was cancelled, but no date of cancellation has been mentioned.

Held that:- The Hon’ble High Court set-aside the order and remanded the matter to the Appellate Authority to record specific finding as to when the registration of supplier was cancelled, as to when the inquiry was conducted as to whether any business activity was carried out by the supplier firm. The said exercise shall be completed within a period of six weeks.