No Interference Required in Order Imposing Tax & Penalty If Assessee Didn’t Establish Actual Movement of Goods | HC
- News|Blog|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 1 December, 2023
Latest from Taxmann
Case Details: Shiv Trading v. State of U.P. - [2023] 156 taxmann.com 715 (Allahabad)
Judiciary and Counsel Details
-
- 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.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
