The Supreme Court of India has held that a genuine buyer cannot be denied ITC merely because the seller failed to deposit tax. In M/s Shanti Kiran India Pvt Ltd vs Commissioner, Trade & Tax, Delhi (October 9, 2025), the Court emphasized fairness: action should target the defaulting seller, not the compliant purchaser. While the case arose under the Delhi VAT Act, its reasoning strongly influences GST disputes under Section 16(2)(c). Businesses gain a constitutional shield against automatic ITC denials but must continue robust documentation, vendor checks, and genuine transactions. Example: if you paid ₹100 in tax against a valid invoice and acted in good faith, your ITC right stands.