The Commissioner, Commercial Tax vs. S/S Leather Craft
Held
The Court held that while an inquiry with the direct seller is normally sufficient for ITC claims, in this case, ex-parte inquiries were relied upon without confronting the assessee or providing an opportunity to cross-examine. The Court found that the provisional assessment proceedings were flawed due to this lack of due process.
Facts
The assessee claimed Input Tax Credit (ITC) based on purchases from certain dealers. The revenue authorities rejected the ITC claim, partly because the initial seller from whom the assessee's suppliers purchased had their registration cancelled. The Tribunal allowed the assessee's appeals, finding the sales to the assessee could not be doubted solely due to issues with the initial seller.
Key Issues
Whether the rejection of ITC based on ex-parte inquiries with upstream suppliers, without confronting the assessee, is legally sustainable? Whether the Tribunal was justified in allowing ITC when the revenue relied on un-confronted evidence?
Sections Cited
Rule 21(3)
AI-generated summary — verify with the full judgment below
1 Court No. - 7 Case :- SALES/TRADE TAX REVISION No. - 201 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Leather Craft Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey with Case :- SALES/TRADE TAX REVISION No. - 202 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Leather Craft Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey with Case :- SALES/TRADE TAX REVISION No. - 203 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Leather Craft Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey with Case :- SALES/TRADE TAX REVISION No. - 204 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Leather Craft Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey and Case :- SALES/TRADE TAX REVISION No. - 205 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Leather Craft Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey
2 Hon'ble Saumitra Dayal Singh, J.
Present batch of
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