No Interference Required in Order Imposing Tax & Penalty If Assessee Didn’t Establish Actual Movement of Goods | HC
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Case Details: Shiv Trading v. State of U.P. - [2023] 156 taxmann.com 715 (Allahabad)
Judiciary and Counsel Details
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- Piyush Agrawal, J.
- Pranjal Shukla for the Petitioner.
- C.S.C. for the Respondent.
Facts of the Case
The petitioner was engaged in business of purchase and sale of iron machinery parts and hardware. It availed input tax credit on purchases made from a company. The inspection was carried out by the GST department and it was found that said company was non-existent and therefore it was alleged that transactions shown by petitioner were bogus, fictitious and fake. Thereafter, an order imposing tax and penalty along with interest was passed upon petitioner. It filed writ petition against the demand.
High Court Held
The Honorable High Court noted that the petitioner failed to discharge its onus to prove and establish beyond doubt actual transaction, actual physical movement of goods as well as genuineness of transactions. Since, the burden of proving the correctness of ITC remains upon the dealer claiming such ITC and thus, such burden of proof can’t get shifted on the revenue. Therefore, the Court held that the proceedings had rightly been initiated against petitioner under Section 74 and no interference was called for said order.
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