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TMI Blog2024 (2) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... aid the amount to the seller as raised in the invoices. The facts which have been mentioned hereinabove and the documents which have been relied upon by the petitioners were not produced before the authorities. Rather, the petitioners, in the online mode, had made a request for reconsideration of the interest amount which gives rise to a presumption that the petitioners were willing to pay the other amounts, as claimed, with some reduction in the interest component. In the absence of any detailed letter of admission of the liability, it is difficult for this Court to understand the actual contentions of the petitioners before the authority. Prima facie, it appears that the press release has been violated by the respondents. The law has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the petitioners had availed of input tax credit, contrary to law. The petitioners have challenged the said order on the ground that the invoices with regard to payment to the seller would indicate that for every transaction for the said financial year with the particular seller, the IGST had been paid to the seller. 2. According to the petitioners, non-compliance of the law by the seller could not saddle the petitioners with the burden of refund of input tax credit which the petitioners had rightfully availed. The petitioners further submit that the order impugned is without jurisdiction and issued in non-compliance of the statute and the press releases of the Board. Thus, the alternative remedy of appeal will not stand in the way of fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enquiry against the supplier and without effecting recovery from the supplier, the appellant therein could not have been saddled with the proceeding under the Act. On scrutiny of the return submitted by the supplier, the discrepancies were noticed by the authority. 7. Ultimately, it was held by the Hon ble Division Bench that without resorting to any action against the selling dealer, the authority could not have arbitrarily reversed the input tax credit availed of by the appellant. Unless exceptional case could be shown by the authority that the supplier was either missing or business of the supplier had been closed and the supplier did not have assets to remit the amount of IGST, the purchaser could not be saddled with the burden to refun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision Bench of this Court to the effect that before the buyer is proceeded against for reversal of the input tax credit on account of failure of payment of IGST, the supplier should be proceeded against. Only in exceptional cases, the authority could proceed against the buyer. 11. In this case, it appears that there are invoices which indicate that the IGST was paid to the seller. However, there is nothing on record to show that the seller had either wilfully suppressed such payment made by the petitioners or that the petitioners had actually paid the amount to the seller as raised in the invoices. 12. The facts which have been mentioned hereinabove and the documents which have been relied upon by Mr. Ghosh, learned Advocate appearing on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court is of the view that the petitioners should be given a chance to approach the authority with all documents and contentions in respect of the demand raised. 16. The order impugned dated August 21, 2023 which was passed on the assumption that no explanation had been offered by the petitioners, is set aside on the ground that the petitioners were not able to produce any explanation and documents at the hearing, which are now being relied upon by them. The authority shall adjudicate the matter once again, by allowing the petitioners an opportunity to file their reply to the show cause with all documents and dispose of the matter in accordance with law upon hearing the petitioner No. 2 or any other representative of the petitioner No. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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