The Commissioner Commercial Tax Lko. vs. S/S Balaji Insulation Co.
Held
The Tribunal erred by allowing ITC based on documents presented for the first time without giving the Revenue an opportunity for verification. The Court held that the Tribunal should have sought verification from the assessing authority before allowing the claim.
Facts
The assessing authority and first appellate authority rejected the dealer's claim for Input Tax Credit (ITC) on purchases from three firms, finding them non-existent and lacking proof of goods movement. The Tribunal, however, allowed the ITC based on documents submitted for the first time.
Key Issues
Whether the Tribunal was justified in granting ITC without verifying documents and allowing the Revenue no opportunity to rebut them?
Sections Cited
section 28
AI-generated summary — verify with the full judgment below
Court No. - 1 Case :- SALES/TRADE TAX REVISION No. - 29 of 2015 Revisionist :- The Commissioner Commercial Tax Lko.
Opposite Party :- S/S Balaji Insulation Co.
Counsel for Revisionist :- S.C.
Hon'ble Piyush Agrawal,J.
In view of the Office report dated 10.11.2021, service of notice upon the opposite party is deemed to be sufficient.
Heard Shri A.C. Tripathi, learned Standing Counsel for the applicant - revisionist. Nobody appears on behalf of the opposite party.
The instant revision has been filed against the judgement & order dated 31.10.2014 passed by the Commercial Tax Tribunal, Ghaziabad Divison - 2, Ghaziabad in Second Appeal No. 218 of 2013 for the assessment year 2008-09 under section 28 of the U.P. Value Added Tax Act. "Whether under the facts & circumstances of the case, the Commercial Tax Tribunal was legally justified in granting the benefit of impute tax credit to the dealer without verifying the nature of transaction as discussed by the assessing authority as well as by the first appellate authority?"
Learned Standing Counsel submits that the assessing authority has disbelieved the claim of Input Tax Credit (ITC) on the purchases made by the three firms of Ghaziab
The judgment continues below.
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