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2024 (5) TMI 914 - HC - GSTDenial of ITC - appellant as the supplier - appellant neither paid the tax nor has filed the returns - the invoices of sale made to the suppliers are with the appellant, and on the basis of the invoices the payments were made - proceedings u/s 74 can be initiated against appellant for availing ITC in a fraudulent manner or not? - HELD THAT - Keeping in view the provisions of section 107 (6) (d) of the Uttarakhand Goods and Services Tax Act 2017, the order dated is being modified that since the appellant has produced all the invoices from the suppliers, and it was the duty of the suppliers to further file their returns, which they have not done, the order is being modified that appellant will deposit 10% of the amount, which is being demanded by the respondents. Appeal disposed off.
Issues involved:
The issues involved in the judgment are related to the denial of Input Tax Credit (ITC) to the appellant due to the default of the suppliers in filing returns under section 74 of the Goods and Service Tax, 2017, and the appellant's contention regarding the payment of GST and proper documentation of transactions. Summary: Issue 1: Denial of ITC due to suppliers' default in filing returns The appellant, engaged in the business of iron scrap and waste, had purchased goods with proper invoices and paid applicable GST through banking channels. The appellant rightfully availed the input tax credit for the tax period, but the suppliers failed to file returns. The question was whether the appellant could be held responsible for the suppliers' default. The demand amount was initially high but decreased in subsequent notices. The appellant argued that proceedings under section 74 cannot be initiated against them for availing ITC in a fraudulent manner. Issue 2: Appellant's status as a supplier The appellant, also acting as a supplier, had not paid tax or filed returns themselves. However, they had invoices of sales made to suppliers and payments were made based on these invoices. This fact was a key point in the appeal. Judgment: Considering section 107(6)(d) of the Uttarakhand Goods and Services Tax Act 2017, the court modified the order, stating that since the appellant had provided all invoices from the suppliers, and it was the suppliers' responsibility to file returns, the appellant would only need to deposit 10% of the demanded amount. The order was modified accordingly, and the appeal was disposed of.
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