2026-VIL-220-GSTAT-AGR
  1. Home
  2. 2026-VIL-220-GSTAT-AGR

SGST Tribunal

GST - Input Tax Credit, Allegation of bogus supplier - Eligibility of ITC supported by documentary evidence of purchase, transportation and receipt of goods - SCN under Section 74 was issued to the Respondent-assessee on the basis of an investigation report from another State alleging that the supplier was a bogus firm engaged only in exchange of invoices, and that the Respondent had availed ITC on purchases from that supplier. The adjudicating authority confirmed tax, penalty and interest as no reply was filed, but the FAA set aside the demand and penalty - Whether ITC availed on purchases from the supplier was liable to be disallowed on the ground that the supplier was allegedly bogus and the actual movement and receipt of goods was not established - HELD - The allegation against the supplier cannot be considered in isolation from the evidence produced by the recipient, as the eligibility of ITC must be examined with reference to the statutory conditions and the facts and evidence relating to the particular transactions - The Respondent produced purchase orders, tax invoices, e-way bills, payment records, entries in the books of account and stock register, consignment documents and vehicle particulars, which establish the actual purchase, transportation and receipt of goods and refute the allegation that only invoices were procured. The registration of the supplier, which had allegedly been cancelled on the basis of the investigation, was subsequently restored by the supplier's jurisdictional authority and the Revenue did not controvert the revocation order. The revocation of the supplier's registration nullifies the allegation that the supplier is bogus or non-existent. The ratios of the High Court judgments relied upon by the Revenue do not apply to the facts of the case - Allowance of ITC is justified, the Revenue has failed to establish grounds for interference - The appeal is dismissed - Natural Justice - Additional evidence accepted by FAA - Whether acceptance of additional evidence without opportunity to adjudicating authority vitiates the appellate order - The Revenue contended that the FAA accepted additional evidence produced by the Respondent-taxpayer without affording the adjudicating authority an adequate opportunity to examine and controvert it, contrary to the principles of natural justice, while the Respondent submitted that the documents were forwarded to the adjudicating authority and a report was called for - Whether the order of the FAA allowing ITC calls for interference on the ground that additional evidence was accepted without opportunity to the Revenue - HELD - The FAA did not proceed solely on the basis of the Respondent's assertions. The record indicates that the documents produced by the Respondent were forwarded to the adjudicating authority, a report was called for, and the report submitted by the adjudicating authority was taken into consideration by the FAA. In these circumstances, the contention that the additional evidence was accepted without affording any opportunity to the Revenue does not furnish sufficient ground for setting aside the impugned order - The ground of the Revenue is rejected, the appeal is dismissed and the order of the FAA is upheld.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?