The Commissioner, Commercial Tax vs. S/S Kamta Prasad Braj Mohan Lal
Held
The Tribunal was justified in allowing the ITC as the supplier's registration cancellation occurred after the relevant assessment year. The purchases were supported by valid invoices and payments were made through banking channels, with no evidence to doubt the transactions.
Facts
The revenue challenged the Commercial Tax Tribunal's decision to allow input tax credit (ITC) to the assessee. The Assessing Authority had disallowed ITC because the supplier's registration was cancelled. However, the Tribunal found that the supplier's registration was cancelled after the assessment year closed and that the purchases were supported by regular invoices and banking channel payments.
Key Issues
Whether the cancellation of a supplier's registration after the assessment year closes can be a basis to deny input tax credit to the assessee for that year. Whether the Tribunal's findings of fact, based on evidence of invoices and banking payments, were legally sustainable.
Sections Cited
None
AI-generated summary — verify with the full judgment below
Court No. - 7 Case :- SALES/TRADE TAX REVISION No. - 206 of 2018 Applicant :- The Commissioner, Commercial Tax Opposite Party :- S/S Kamta Prasad Braj Mohan Lal Counsel for Applicant :- Bipin Kumar Pandey Counsel for Opposite Party :- Aditya Pandey Hon'ble Saumitra Dayal Singh,J.
Heard learned counsel for the applicant and learned counsel for the opposite party.
The present revision is filed by the revenue for the A.Y. 2011-12 seeking to raise the following question of law: "Whether on the facts and in the circumstances of the case Commercial Tax Tribunal was legally justified in allowing the benefit of input tax credit of Rs. 3,85,055/- without there being any material on record that the said amount has been paid by M/s Om Steel ?"
The Assessing Authority had reversed I.T.C. on the reasoning that the registration of another dealer Om Traders from whom the respondent- assessee had acquired stock in trade had been cancelled. Since that registration had been cancelled, the assessing officer disbelieved the purchase of stock disclosed by the respondent-assessee and accordingly reversed the I.T.C. claim.
While the First Appellate Authority allowed the assessee's appeal and
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.