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2021 (8) TMI 517 - HC - GSTSeeking a direction to unblock the Input Tax Credit (ITC) available in the electronic credit ledger - materials necessary to substantiate its request for unblocking of the credit supplied or not - rejection on the ground that the tax payer has claimed ITC using fake invoices - HELD THAT - The claim of ITC is one that would have to be decided based on documents that are supplied by an assessee as well as material collated/available with the Assessing Officer and not by way of a cursory order, as has been done in the present case. The representation of the petitioner dated 18.02.2021 encloses several documents that must be taken into account in coming to a decision as to whether the petitioner is entitled to succeed or not, and this has to be done by way of a reasoned, speaking order. The impugned order hardly meets the standards to be followed in the framing of a assessment and is hence set aside. Petition allowed.
Issues:
1. Disputed Input Tax Credit (ITC) claim based on alleged fake invoices. Analysis: The petitioner, a registered dealer under the Goods and Service Tax Act, 2017, had previously sought relief to unblock the ITC available in the electronic credit ledger through a writ petition. Despite providing necessary materials to the respondent, a show cause notice was issued alleging the ITC claim was based on fake invoices. The impugned order summarily rejected the ITC claim without proper consideration of the documents submitted by the petitioner, leading to the court setting aside the order. The court emphasized the importance of a reasoned and speaking order in deciding the ITC claim based on the documents provided by the assessee and available with the Assessing Officer. The petitioner, who failed to respond to the show cause notice due to the pandemic lockdown, was directed to appear before the authority to submit a reply and relevant documents. The authority was instructed to decide on the ITC claim through a speaking order after considering all submissions in accordance with the law. In conclusion, the writ petition was allowed, and the connected miscellaneous petition was closed without any costs. The judgment highlighted the need for a thorough assessment process based on evidence and documents to determine the validity of the ITC claim, ensuring a fair and reasoned decision in accordance with legal standards.
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