No Reversal of ITC on Ground that Supplier was Non-Existent if Documentary Evidence Was Duly Produced | HC

Case Details: TVL.Cleon Optobiz (P.) Ltd. v. Assistant Commissioner (ST) - [2024] 158 taxmann.com 691 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Ms Rukmani Venugopalan for the Petitioner.
  • Ms Amirta Poonkodi Dinakaran, Adv. for the Respondent.

Facts of the Case

The petitioner was a registered person under GST laws. It received both an intimation and the show cause notice from the department. Eventually, order was issued by which Input Tax Credit (ITC) availed by the petitioner in respect of purchases made from a supplier was reversed on the ground that the said entity was non-existent and not conducting business. It filed writ petition against the order and contended that the impugned order was liable to be quashed.

High Court Held

The Honorable High Court noted that the invoices, e-way bills and proof of payment of invoices in form of relevant bank statements were produced by assessee before the department. However, the impugned order recorded finding that the taxable person had not produced documents as required under Section 16 of CGST Act, 2017.

The Court also noted that the assessee was not put on notice that goods dealt with by it were different from those dealt with by its supplier but a finding was recorded on this issue in impugned order. Therefore, it was held that the impugned order was liable to be quashed and matter was to be remanded for reconsideration.