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2024 (2) TMI 855 - HC - GSTReversal of Input Tax Credit (ITC) availed of by the petitioner - reversal on the ground that the GST registration of the relevant supplier was cancelled with retrospective effect - HELD 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. The assessing officer is directed to consider whether the transaction was genuine by examining all relevant documents in that regard - Petition disposed off by way of remand.
Issues involved:
The assessment order reversing Input Tax Credit (ITC) due to cancellation of supplier's GST registration with retrospective effect. Summary: Issue 1: Reversal of Input Tax Credit (ITC) based on supplier's cancelled GST registration The petitioner challenged an assessment order reversing the ITC availed, citing the cancellation of the supplier's GST registration with retrospective effect. The petitioner contended that despite providing supporting documents like tax invoices, e-way bills, and proof of payment, the ITC reversal was solely based on the supplier's cancelled registration. The respondent argued that bill trading is common and raised doubts on the existence of the supplier, M/s.Shikhar Technologies. Issue 2: Judicial scrutiny of the impugned order The impugned order stated that the petitioner failed to prove the existence of M/s.Shikhar Technologies, labeling them as a non-existent dealer issuing fake invoices. The court noted that the petitioner had submitted relevant documents, which were disregarded during the assessment. The court found the rejection of the petitioner's contentions solely on the supplier's cancelled registration as unsustainable. Issue 3: Court's decision and directions The court quashed the assessment order and remanded the matter for reconsideration. The assessing officer was directed to examine all relevant documents to determine the genuineness of the transaction. The court emphasized that the ITC claim should not be rejected based only on the supplier's cancelled registration. A fresh assessment order was to be issued within two months, providing a reasonable opportunity to the petitioner. The writ petition was disposed of with no order as to costs. This summary provides a detailed breakdown of the issues involved in the legal judgment, outlining the arguments presented by both parties and the court's decision and directions regarding the reversal of Input Tax Credit based on the cancellation of the supplier's GST registration.
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