GST
TRT-2025-
Allahabad High Court
Date:-06-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 6 December 2022
Key Pointers –
- The Petitioner, M/S Ashish Trading Company is a proprietorship firm and engaged in a business of purchasing and selling empty tin boxes.
- A show cause notice was issued to the petitioner on 09.12.2019 under Section 74 of the Act. The petitioner replied to the show cause notice online. The reply submitted by the petitioner was rejected.
- A specific ground was taken that all the GST was deposited timely and all the relevant documents were placed before the authorities and the claim of ITC was wrongly cancelled by the Assessing Authority.
- The Hon’ble High Court finds that from reading of both the Sections 16 and 74 of the Act of 2017, it is clear that the Legislature has provided the benefit of input tax credit to those assessee who had supplied goods or services and are registered dealers and further on the requirement being fulfilled as per the provisions can make claim.
- Section 74 puts embargo and places a restriction and gives a handle to the authorities that in case of availing the benefit wrongfully or by reasons of fraud or willful mis-statement of the fact a notice is issued to the assessee and upon adjudication amount is recovered and ITC claimed is reversed.
- The Court finds 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 so as to demonstrate whether transaction took place prior to cancellation or subsequently. Moreover, the first Appellate Authority had discarded the claim of ITC on the ground that no records of payment of loading and unloading of goods were brought before it.
- The Court finds that the finding recorded by the first Appellate Authority cannot be sustained and the same is hereby set-aside. The matter is remanded to the first Appellate Authority to record specific finding as to when the registration of supplier i.e. M/s Riddhi Siddhi Enterprises, Agra was cancelled.
- The writ petition allowed partly.
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