2023 (7) TMI 711 - HC - VAT and Sales Tax

Default assessment of tax framed by the Assessing Authority - rejection of refund claim in respect of input tax credit (ITC) - rejection on the ground that the appellant had failed to establish the genuineness of the ITC on the basis of any documentary evidence - HELD THAT - It is apparent from the orders passed by the Assessing Authority, the learned OHA, and the learned Tribunal that the assessee s challenge to the default assessment was rejected as the appellant had failed to produce any material to establish payment of ITC. This is clearly a question of fact and therefore not amenable to review in these proceedings. It is also material to mention that there is no dispute that the appellant had not produced relevant material before the Assessing Authority or the learned OHA or the learned Tribunal. Learned counsel for the appellant submits that the appellant was not required to produce any such material as the ITC could be verified from the returns and the forms filed online including the returns filed by the dealers from whom the appellant had purchased goods - the said contention is unsubstantial. The Assessing Authority is duly empowered to call for the records and to verify the ITC as claimed. The onus to establish the genuineness of the ITC rests with the assessee. It would not be open for the appellant now to raise any new challenge to the order passed by the Assessing Authority including on the ground that it had not been signed. This question does not arise from the impugned order passed by the Tribunal. The appellant has all along proceeded on the basis that the said order was passed by the Assessing Authority and had assailed the same on merits, which was considered by the OHA and by the learned Tribunal - It is well-settled that in case mala fides are alleged, the same has to be specifically pleaded with full particulars. The scope of the appeal, in the present case, is limited to examining the substantial questions of law that arise in the matter. There are no grounds to entertain the present appeal - appeal dismissed.

Summary

Issues involved:
The judgment involves issues related to condonation of delay in filing the appeal, exemption from filing certain copies, and stay of recovery proceedings in a VAT appeal.

Condonation of Delay:
The application for condonation of delay of 38 days in filing the appeal was allowed by the court for reasons stated in the application.

Exemption from Filing Copies:
An exemption was granted from filing original/certified copies of annexures due to them being dim, typed in single space, or handwritten, subject to all just exceptions.

Stay of Recovery Proceedings in VAT Appeal:
The appellant challenged an order dismissing their appeal against a default tax assessment for the financial year 2013-14. The default assessment was due to the appellant's failure to provide necessary evidence to establish the payment of Input Tax Credit (ITC). The appellant's claim for refund was based on the ITC, which the Assessing Authority rejected for lack of documentary evidence. The Objection Hearing Authority and the Tribunal also dismissed the appeal on the same grounds. The court held that the appellant failed to produce relevant records to establish the ITC, and the onus to prove the genuineness of ITC rests with the assessee. The court rejected arguments of mala fide intentions in the assessment, emphasizing that specific allegations must be pleaded with full particulars. The court dismissed the appeal, stating that none of the contentions raised by the appellant were merited, as the appeal was limited to examining substantial questions of law.