Examination of Supporting Documents

This ruling reinforces procedural fairness in GST adjudication. The Court declined to examine the constitutional challenge to Section 16(2)(c) at this stage but ensured that the assessee’s substantive claim to ITC is not defeated without proper consideration. 

It held that where detailed replies and supporting documents are submitted, authorities are duty-bound to pass a reasoned order after examining genuineness of transactions, supplier compliance, and timing of registration cancellation. 

The decision underscores that ITC denial cannot be mechanical and must be preceded by a fact-based, speaking adjudication.