If it is found upon considering the relevant documents that all the purchases and transactions in question are genuine and supported by valid documents and transactions in question were made before the cancellation of registration of those suppliers and after taking into consideration the judgments of the Supreme Court and various High Courts which have been referred in this order and in that event the petitioners shall be given the benefit of input tax credit in question.
Section 16 of the CGST Act, 2017 --- Input Tax Credit – The petitioners challenged the impugned notices, whereby the respondent refused to grant the benefit of ITC on purchase from the suppliers and also asking to pay penalty and interest. The respondents alleged that the suppliers from whom the petitioners are claiming to have purchased the goods, are all fake and nonexisting. Further, the registration of suppliers in question has already been cancelled with retrospective effect covering the transactions period in question. The petitioners contended that transactions are genuine and valid by relying upon all the supporting relevant documents and have verified the genuineness and identity of the suppliers and more particularly the names of those suppliers as registered taxable person were available at the Government portal. The petitioners relied on various decisions in the matter.
Held that:- The Hon’ble High Court disposed the petition by remanding these cases to the respondents to consider afresh the cases of the petitioners on the issue of their entitlement of benefit of ITC by considering the documents which the petitioners want to rely. If it is found upon that all the purchases and transactions are genuine and supported by valid documents and transactions were made before the cancellation of registration of those suppliers, then the petitioners shall be given the benefit of input tax credit in question. These cases of the petitioners shall be disposed of by the respondents concerned in accordance with law within eight weeks.
If it is found upon considering the relevant documents that all the purchases and transactions in question are genuine and supported by valid documents and transactions in question were made before the cancellation of registration of those suppliers and after taking into consideration the judgments of the Supreme Court and various High Courts which have been referred in this order and in that event the petitioners shall be given the benefit of input tax credit in question.
Section 16 of the CGST Act, 2017 --- Input Tax Credit – The petitioners challenged the impugned notices, whereby the respondent refused to grant the benefit of ITC on purchase from the suppliers and also asking to pay penalty and interest. The respondents alleged that the suppliers from whom the petitioners are claiming to have purchased the goods, are all fake and nonexisting. Further, the registration of suppliers in question has already been cancelled with retrospective effect covering the transactions period in question. The petitioners contended that transactions are genuine and valid by relying upon all the supporting relevant documents and have verified the genuineness and identity of the suppliers and more particularly the names of those suppliers as registered taxable person were available at the Government portal. The petitioners relied on various decisions in the matter.
Held that:- The Hon’ble High Court disposed the petition by remanding these cases to the respondents to consider afresh the cases of the petitioners on the issue of their entitlement of benefit of ITC by considering the documents which the petitioners want to rely. If it is found upon that all the purchases and transactions are genuine and supported by valid documents and transactions were made before the cancellation of registration of those suppliers, then the petitioners shall be given the benefit of input tax credit in question. These cases of the petitioners shall be disposed of by the respondents concerned in accordance with law within eight weeks.