Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Karnataka Value Added Tax Act 2003 Input Tax Credit Burden of proof u/s. 70 Claim of |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Karnataka Value Added Tax Act, 2003 (32 of 2004) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Karnataka Value Added Tax Act, 2003 – s. 70 Karnataka Value Added Tax Rules, 2005 – rr. 27 and 29 – Burden of proof u/s. 70 – Input Tax Credit – Claim of – Respondents (purchasing dealers) claimed the Input Tax Credit (ITC) on the purchases made from the respective dealers – Assessing Officer, doubted the genuineness of the transactions and the purchases made from the respective dealers and denied the ITC – Findings of Assessing Officer confirmed by the first Appellate Authority – Second Appellate Authority and the High Court have allowed the ITC, by observing that as the purchasing dealers produced the invoices issued by the respective dealers and that in some of the cases, they also made the payment through cheques, the Assessing Officer was not justified in denying the ITC – On appeal, held: The burden of proving that the ITC claim is correct lies upon the purchasing dealer claiming such ITC – For claiming ITC, genuineness of the transaction and actual physical movement of the goods are the sine qua non – Mere production of the invoices and/or payment by cheque is not sufficient and cannot be said to be proving the burden as per s. 70 – Respondents failed to prove the genuineness of the transactions and failed to discharge the burden of proof as per s. 70 – In absence of any cogent material like furnishing the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc. and the actual physical movement of the goods by producing the cogent materials, the Assessing Officer was absolutely justified in denying the ITC – Merely because the tax invoice as per Rule 27 and Rule 29 might have been produced, that by itself cannot be said to be proving the actual physical movement of the goods – Judgments passed by the High Court and the second Appellate Authority allowing the ITC quashed and set aside – The orders passed by the Assessing Officer, confirmed by the first Appellate Authority are restored. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 212 |
Petitioner | The State Of Karnataka |
Respondent | M/s Ecom Gill Coffee Trading Private Limited |
SCR | [2023] 2 S.C.R. 647 |
Judgement Date | 2023-03-13 |
Case Number | 230 |
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