Order Rejecting ITC Without Considering Documents Relating to Transportation & Physical Movement of Goods to Be Quashed | HC

Case Details: Tvl.Sharmi Traders v. Assistant Commissioner - [2024] 161 taxmann.com 173 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• N.V. Balaji for the Petitioner. 
• TNC. Kaushik for the Respondent.

Facts of the Case

The petitioner was engaged in the business of dealing in copper waste and scrap of primary cells, primary batteries and electric accumulators. The department conducted inspection and issued notice to petitioner for alleged contravention of Section 16(2)(b) of the CGST Act.

It was alleged that ITC was wrongly availed and the petitioner submitted reply along with relevant ledger accounts, tax invoices and E-way bills. However, the department rejected the explanation provided by the petitioner and order was passed.

It filed writ petition against the order and contended that documents filed by the petitioner to corroborate that the input goods were duly purchased and delivered to the petitioner were not taken into account.

High Court Held

The Honorable High Court noted that the invoices and E-way bills submitted by the petitioner contain details of not only the products purchased by the petitioner but also the vehicles used for the movement of goods. However, the impugned order did not contain any discussion on documents produced by petitioner to corroborate assertion that legitimate purchases were made and point out deficiencies or inadequacies. Therefore, it was held that the impugned order was liable to be quashed and matter was remanded for re-consideration.