M/S Jognics vs. Addl. Commissioner Of
Held
The Court held that denying input tax credit solely because selling dealers did not file returns or pay tax is insufficient unless the transactions are proven to be non-genuine or fictitious. The burden of proof lies on the assessee, but authorities must analyze the genuineness of transactions.
Facts
The assessee claimed input tax credit based on invoices from selling dealers. The assessing authority denied this credit, stating some selling dealers did not furnish tax compliance. The first appellate authority partly allowed the appeal, but the revisional authority set aside this order and restored the re-assessment order.
Key Issues
Whether input tax credit can be denied solely on the ground that selling dealers failed to file returns or pay tax, without proving the transactions are not genuine. Whether the revisional authority had jurisdiction to set aside the first appellate authority's order without proper analysis of transaction genuineness.
Sections Cited
Section 39(1), Section 39(2), Section 64(1), Section 70
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 16TH DAY OF DECEMBER, 2021
PRESENT
THE HON’BLE MRS.JUSTICE S.SUJATHA
AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY
S.T.A.No.4/2021
BETWEEN :
M/s JOGNICS NO.14/1, SUBRAMANYAPURA ROAD UTTARAHALLI, BENGALURU-560 061 REP BY ITS PROPRIETOR SRI C.JAGANNATHA S/O LATE CHIKANNA
AGED ABOUT 65 YEARS
...APPELLANT
(BY SRI M.THIRUMALESH, ADV.)
AND :
1 . ADDL. COMMISSIONER OF COMMERCIAL TAXES, ZONE-II 6TH FLOOR, VANIJYA TERIGE KARYALAYA GANDHINAGAR, BENGALURU-560 009
2 . ASST. COMMISSIONER OF COMMERCIAL TAXES, (AUDIT)-2.5 DVO-2, NO.642, PIONEER PLAZA, TEMPLE ROAD, RAJARAJESHWARINAGAR BENGALURU-560 098
…RESPONDENTS
(BY SRI JEEVAN J. NEERALGI, ADV.) THIS STA IS FILED UNDER SECTION 66(1) OF THE KVAT ACT, 2003 AGAINST THE ORDER DATED 23.01.2020 PASSED IN NO.ADCOM/ZONE-II/APP-2/SMR/CR-31/2019-20 ON THE FILE OF THE ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES ZONE-II, GANDHINAGAR, BANGALORE SETTING ASIDE THE ORDER DATED 26.03.2018 PASSED IN VAT.AP.No.1279/2015-16 BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS) 2
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.