2023 (8) TMI 1392 - HC - GST

Input tax credit - genuineness of the transactions of its sister concern - order passed without verifying the books of accounts of its sister concern - HELD THAT - It is the submission of the learned counsel for the appellant Sri.Anil D.Nair that Ext.P9 order having been passed without verifying the books of account of the sister concern from whom the appellant had purchased goods on which input tax credit was taken, the appellant was prejudiced since it had no way of establishing that the credit was correctly availed. On a consideration of the said submission, it is found that the said argument on merits is one that can be taken by the appellant in proceedings before the appellate authority, and hence the learned Single Judge was not in error while dismissing the Writ Petition for the existence of the alternate remedy. There are no reason to interfere with the judgment of the learned Single Judge - appeal dismissed.

Summary

Issues involved: Challenge to denial of input tax credit, legality and arbitrariness of Ext.P9 order, availability of alternative statutory remedy u/s 107 of the Central Goods and Services Tax Act.

Summary:
The petitioner appealed against the judgment of the learned Single Judge in the Writ Petition, challenging the denial of input tax credit in Ext.P9 order by the respondent. The appellant raised concerns about the genuineness of transactions of its sister concern and argued that Ext.P9 order was passed without verifying the sister concern's books of accounts, rendering it illegal and arbitrary.

The learned Single Judge noted that the appellant had an alternative remedy through an appeal u/s 107 of the Central Goods and Services Tax Act against Ext.P9 order. Considering the availability of this statutory remedy, the learned Single Judge directed the appellant to pursue the appeal process.

During the appeal, the appellant's counsel contended that Ext.P9 order was prejudicial as it was issued without verifying the sister concern's books of account, impacting the appellant's ability to prove the correctness of the availed credit. The Court acknowledged this argument but emphasized that such merits could be addressed before the appellate authority. Consequently, the Court upheld the dismissal of the Writ Petition by the learned Single Judge, stating that the existence of an alternative remedy justified the decision. The Writ Appeal was consequently dismissed.