M/S Shiv Trading vs. State Of U.P. And 2 Others
Held
The Court held that the burden of proof lies on the purchasing dealer to establish the genuineness of transactions and the actual physical movement of goods. Since the petitioner failed to prove these aspects, the proceedings initiated against them were justified.
Facts
The petitioner availed Input Tax Credit (ITC) based on invoices from a supplier. Upon inspection, the supplier was found to be non-existent, leading to proceedings initiated against the petitioner for alleged bogus transactions. The petitioner's appeal against the tax and penalty order was dismissed.
Key Issues
Whether the petitioner discharged its burden to prove the genuineness of transactions and actual movement of goods for claiming Input Tax Credit, and if the proceedings initiated under Section 74 of the GST Act were justified.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
1 Neutral Citation No. - 2023:AHC:223893 RESERVED Court No. - 5 Case :- WRIT TAX No. - 1421 of 2022 Petitioner :- M/S Shiv Trading Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Pranjal Shukla Counsel for Respondent :- C.S.C. HON'BLE PIYUSH AGRAWAL,J.
Heard Shri Pranjal Shukla, learned counsel for the petitioner and learned ACSC for the State - respondent.
The instant Writ Tax is being entertained in view of the fact that no GST Tribunal has been constituted in the State of Uttar Pradesh pursuant to the notification of the Central Government bearing number CG-DL-E-14092023-248743 dated 14.09.2023. 3. The present writ petition has been filed challenging the order dated 01.06.2022 passed by the Additional Commissioner, Grade - 2 (Appeals - 1st), Muzaffarnagar by which the appeal of the petitioner has been dismissed.
Learned counsel for the petitioner submits that the instant proceedings under section 74 of the GST Act have wrongly been initiated against the petitioner. He further submits that the petitioner is a registered proprietorship firm and engaged in the business of purchase and sale of iron machinery parts and hardware. In its normal course of
The judgment continues below.
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