Order Date – 15 February 2024

Parties: M/s. Engineering Tools Corporation Vs The Assistant Commissioner (ST)

Facts –

• The Petitioner, M/s. Engineering Tools Corporation, had purchased goods from M/s. Shikhar Technologies in 2017-2018 and that such purchases are supported by tax invoices, e-way bills, transport documents and proof of payment to the supplier through regular banking channels. 
• In spite of submitting all these documents, it is stated that the ITC was reversed solely on the ground that the registration of the petitioner's supplier was cancelled with retrospective effect.

Issue –

• Whether the reversal of ITC and cancellation of registration with retrospective effect is proper?

Order –

• The Single Bench of Hon’ble High Court observed that it is abundantly clear that the contentions of the petitioner were rejected entirely on the ground that the petitioner should have proved the existence of M/s. Shikhar Technologies. The petitioner purchased goods in 2017-2018 and, at the highest, the petitioner may be called upon to produce evidence of the existence of the supplier at the relevant point of time.
• In addition, the petitioner may be called upon to prove that the transaction was genuine by providing relevant documents such as tax invoices, e-way bills, lorry receipts, delivery challans, proof for payment and the like. In the case at hand, it appears that the petitioner submitted such documents but these documents were disregarded.
• The impugned assessment order is unsustainable in the facts and circumstances. Hence, the impugned assessment order is quashed and the matter is remanded for reconsideration.