9911796707
TMI Blog2018 (2) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer registered under the provisions of the Act and is engaged in the business of manufacture and sale of steel blooms, billets and rounds. It transpires that during the tax periods April 2005 to March 2006, the petitioner effected purchases of iron ore, scrap, ferro alloys, refractory bricks, gases, etc. for use in the course of its business. In respect of the said purchases, the selling dealers raised tax invoices as prescribed under Section 29 of the Act on the petitioner and it was contended by the assessee that the applicable tax amount was collected by the selling dealers under the provisions of the Act on such sales. It was the contention of the petitioner that those goods purchased by it were used in the manufacture of goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Being aggrieved, the assessee is in revision petition. 3. Learned counsel, Sri.T.Suryanarayana appearing for the petitioner would contend that no provision under the Act authorises the authorities to disallow the input tax credit at the hands of purchasing dealer, wherein the selling dealer has failed to file the sales tax returns and discharge its sales tax liability. Denial of input tax credit is not supported by any statutory provision and is contrary to the provisions of the Act. It is contended that input tax credit was supported by valid tax invoices raised by the selling dealers in accordance with the provisions of Section 29 of the Act, the petitioner is entitled to claim input tax credit based on the invoices raised by the selli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the input tax credit claimed was for the purchases made from the said selling dealer No.7 who has filed the monthly returns for the tax period 2005-06 and remitted tax to the treasury which is manifest from the statement of accounts of the selling dealers. On these grounds, the learned counsel seeks to set aside the order impugned herein, by allowing the revision petition. 6. Learned AGA appearing for the respondent would emphasize that the burden lies on the assessee to prove that the tax collected was deposited by the selling dealers to the Government. Reliance is placed on Section 70 of the Act to contend that, for the purposes of any claim to input tax under the Act, the burden of proving that any transaction of a dealer is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the selling dealers for the relevant period in question. To answer the issue involved in this revision petition, it is apt to consider the statement of objections filed by the respondent. Table in para No.3 is extracted hereunder: Thus, it is categorically admitted that in respect of selling dealer Nos.1 to 3, assessee is entitled to the input tax credit; as regards the selling dealer No.7 is concerned, now the assessee has filed the income tax returns filed by the said dealer along with bank statements, which prima facie shows that the selling dealer has remitted the collected tax from the assessee. The assessee has utilized the goods purchased from the selling dealers for the manufacture of goods and effected local and interstat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The limited ground on which we have to examine the issue on hand is, whether the respondent was justified in denying input tax credit benefits to the assessee, on the ground that the VAT-100 returns filed by the selling dealers are not traceable under EFS. It is trite that the revenue can be at a loss in allowing the input tax credit to a dealer, who deals with a bogus transaction, for example, a selling dealer who is not in existence or a deregistered dealer, in such circumstances, it is not in doubt that unless the purchasing dealer establishes the genuineness of the invoices issued by the selling dealer, no input tax credit can be allowed but that is not the case in the present set of facts. The Assessing Officer while passing reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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