Biswajit Kundu V/s Superintendent of Central Tax {HIGH COURT OF CALCUTTA}
Biswajit Kundu V/s Superintendent of Central Tax {HIGH COURT OF CALCUTTA} :
Date of Order : 21-05-2024
In the case of Biswajit Kundu v. Superintendent of Central Tax, the issue involved the denial of Input Tax Credit (ITC) to the assessee because the registration of the supplier had been cancelled retrospectively. The adjudicating authority had not verified the genuineness of the transaction at the supplier’s end before denying the ITC.
The High Court of Calcutta considered the appeal filed by Biswajit Kundu challenging the adjudication order that denied him ITC. The court noted that while the appellant claimed to have valid tax invoices and had paid taxes, the authenticity of the transaction needed to be established through documentary evidence, specifically regarding the movement of goods.
The court emphasized that before the adjudicating authority could verify the supplier’s end, the appellant must first prove the movement of goods with proper documentation. The appellant was directed to treat the original order as a show cause notice and submit a reply along with documentary evidence demonstrating the movement of goods as per the tax invoice.
It was clarified that if the appellant successfully proved the movement of goods, then the adjudicating authority would proceed to verify the supplier’s end. However, if the appellant failed to substantiate the movement of goods, the adjudicating authority could reaffirm its earlier decision denying ITC.
The court’s decision granted the appellant another opportunity to present evidence supporting the movement of goods, highlighting the importance of documentary proof in establishing the genuineness of transactions under GST laws. It also emphasized that the authenticity of the documents provided by the appellant would be rigorously scrutinized by the adjudicating authority.
Overall, the ruling provided a procedural framework wherein the appellant was given a fair chance to substantiate his claim for ITC based on the proper documentation of goods movement, ensuring due process and fair adjudication in matters concerning GST credit entitlements.
