M/S Shivalik Buildtech PVT. LTD. vs. The Commissioner, Commercial Taxes
Held
The Court held that penalty proceedings against the revisionist were illegal and arbitrary. It reasoned that the revisionist could not be held liable unless they were aware of the seller's registration cancellation.
Facts
The revisionist claimed Input Tax Credit on purchases from a supplier whose registration was subsequently cancelled. The assessing authority initiated penalty proceedings against the revisionist, alleging involvement in bogus activities.
Key Issues
Whether penalty can be imposed on a purchaser for transactions with a seller whose registration was cancelled, without proof of the purchaser's knowledge of such cancellation.
Sections Cited
Section 54
AI-generated summary — verify with the full judgment below
1 Court No. 6 Case : SALES/TRADE TAX REVISION No. 236 of 2018 Applicant : M/S Shivalik Buildtech Pvt. Ltd.
Opposite Party : The Commissioner, Commercial Taxes Counsel for Applicant : Shubham Agrawal Counsel for Opposite Party : C.S.C.
Hon'ble Ashok Kumar,J.
Heard Ms. Sanyukta Singh, learned counsel for the revisionist and Sri B.K. Pandey, learned counsel for the opposite party.
This revision petition is filed under Section 58 of the U.P. VAT Act, 2008 by which the revisionist has challenged the order passed by the Commercial Tax Tribunal, Saharanpur Bench, Saharanpur passed in Second Appeal No. 37 of 2017 for the Assessment Year 201011 under Section 54 (1)(11) of VAT Act.
Brief facts of the case are that the revisionist is a registered company and is carrying on a business of construction of building for which certain purchases were affected by the revisionist including the purchase of sand.
While claiming benefit of Input Tax Credit the revisionist has submitted the relevant documents before its assessing authority and during the course of verification of the claim the assessing authority has inquired into the purchases affected by revisionist from one M/
The judgment continues below.
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