Respondent have rejected the claim for ITC simply stating that 'the tax payer has claimed ITC using fake invoices. The authority shall decide the claim of ITC by way of a speaking order, in accordance with law.
Section 16 of the CGST Act, 2017 – Input Tax Credit – The petitioner is a dealer, sought a direction to unblock the ITC available in the electronic credit ledger. By Court’s earlier order dated 08.01.2021, the petitioner was permitted to approach the appropriate authority seeking relief that would be considered, in accordance with law. Thereafter, the petitioner has approached the respondent by way of a written representation. The petitioner submitted that all materials necessary to substantiate its request for unblocking of the credit have been supplied to the respondent. The respondent issued a SCN on 30.03.2021 and the petitioner has been afforded an opportunity of personal hearing. The respondent issued order dated 22.06.2021 rejecting the claim for ITC simply stating that the tax payer has claimed ITC using fake invoices. Hence the corresponding ITC is disallowed. The court observed that the representation of the petitioner contains several documents that must be taken into account in coming to a decision as to whether the petitioner is entitled to succeed or not, and this has to be done by way of a reasoned, speaking order.
Held that:- The Hon’ble High Court set aside the impugned order and directed the petitioner to appear before the authority on Monday the 16th August of 2021 with its reply to the show cause notice. After hearing the petitioner and considering the reply as well as the documents filed/to be filed, the authority shall decide the claim of ITC by way of a speaking order, in accordance with law.
Respondent have rejected the claim for ITC simply stating that 'the tax payer has claimed ITC using fake invoices. The authority shall decide the claim of ITC by way of a speaking order, in accordance with law.
Section 16 of the CGST Act, 2017 – Input Tax Credit – The petitioner is a dealer, sought a direction to unblock the ITC available in the electronic credit ledger. By Court’s earlier order dated 08.01.2021, the petitioner was permitted to approach the appropriate authority seeking relief that would be considered, in accordance with law. Thereafter, the petitioner has approached the respondent by way of a written representation. The petitioner submitted that all materials necessary to substantiate its request for unblocking of the credit have been supplied to the respondent. The respondent issued a SCN on 30.03.2021 and the petitioner has been afforded an opportunity of personal hearing. The respondent issued order dated 22.06.2021 rejecting the claim for ITC simply stating that the tax payer has claimed ITC using fake invoices. Hence the corresponding ITC is disallowed. The court observed that the representation of the petitioner contains several documents that must be taken into account in coming to a decision as to whether the petitioner is entitled to succeed or not, and this has to be done by way of a reasoned, speaking order.
Held that:- The Hon’ble High Court set aside the impugned order and directed the petitioner to appear before the authority on Monday the 16th August of 2021 with its reply to the show cause notice. After hearing the petitioner and considering the reply as well as the documents filed/to be filed, the authority shall decide the claim of ITC by way of a speaking order, in accordance with law.