M/S. J. C. Industries vs. State Of Karnataka
Held
The Court held that the petitioner's claim of breach of natural justice was unfounded. The proposition notice clearly indicated the proposed disallowance of ITC due to the selling dealer being bogus, and the petitioner was given an opportunity to inspect the investigation report.
Facts
The petitioner challenged a reassessment order disallowing Input Tax Credit (ITC) on purchases from a dealer identified as bogus. The petitioner argued a breach of natural justice as adverse material was not fully disclosed and they weren't given an opportunity to cross-examine the selling dealer.
Key Issues
Whether the reassessment order disallowing ITC was passed in violation of principles of natural justice. Whether the petitioner discharged their onus to prove the genuineness of purchases from a dealer found to be bogus.
Sections Cited
Section 39(1)
AI-generated summary — verify with the full judgment below
1/13 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JANUARY, 2018 BEFORE THE HON’BLE Dr.JUSTICE VINEET KOTHARI W.P.Nos. 56837-848/2016(T-RES) BETWEEN
M/S. J.C.INDUSTRIES #B-90, 2ND FLOOR, 3RD MAIN, D.DEVARAJ URS TRUCK TERMINAL INDUL. SUBURB YESWANTHPUR BANGALORE-560 022 REP. BY ITS PARTNER SRI HEREN N. SANGHAVI, AGED 55 YEARS
...PETITIONER
(BY SRI K.M.SHIVAYOGISWAMY, ADV.)
AND
STATE OF KARNATAKA
BY ITS SECRETARY
DEPARTMENT OF FINANCE
VIDHANA SOUDHA
BANGALORE-560 001. 2. THE DEPUTY COMMISSIONER
OF COMMERCIAL TAXES (AUDIT) 6.7, VAT DVN.-6, KIADB BUILDING, 3RD FLOOR, 14TH CROSS, PEENYA, BANGALORE-560 058. ...RESPONDENTS (BY SRI T.K.VEDAMURTHY, AGA) R
Date of order :16.01.2018 in W.P.Nos.56837-848/2016 M/S.J.C.INDUSTRIES vs. STATE OF KARNATAKA & ANOTHER
2/13
THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED REASSESSMENT ORDER PASSED BY THE R-2 AUTHORITY
The judgment continues below.
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