M/S Jain Steels And Alloys vs. The Assistant Commissioner
Held
The Court held that input tax credit cannot be denied solely because the selling dealer failed to deposit taxes, especially when the purchasing dealer's transactions are genuine. The factual aspect of whether the petitioner discharged the burden of proving payment of taxes needs reconsideration.
Facts
The petitioner sought to quash a reassessment order disallowing input tax credit. The denial was primarily because the selling dealer had not deposited the collected taxes and had not filed returns. The petitioner argued that their transactions were genuine and bona fide.
Key Issues
Whether input tax credit can be denied to a purchasing dealer if the selling dealer has not deposited the collected taxes, despite the purchasing dealer's transactions being genuine. Whether the petitioner discharged the burden of proof regarding payment of taxes to the selling dealer.
Sections Cited
Section 70
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER PASSED BY THE RESPONDENT AUTHORITY UNDER THE PROVISIONS OF THE KVAT ACT IN RELATION TO THE ASSESSMENT PERIOD 2014-15 DATED 30.03.2019 AND THE CONSEQUENTIAL DEMAND NOTICE ISSUED THERETO DATED 30.03.2019 VIDE ANNEXURE-F AND G RESPECTIVELY INSOFAR AS IT RELATES TO DISALLOWANCE OF INPUT TAX CREDIT; AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY,
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