Tvl. Sri Subramanian Industries Vs State Tax Officer (Madras High Court)
In this case before the Madras High Court, the writ petition challenged an assessment order dated 25.05.2025 passed against the petitioner concerning denial of input tax credit (ITC). The tax authorities alleged that the petitioner had claimed ITC and exemption on supplies allegedly made to Government authorities through transactions involving non-existent suppliers. According to the department, the transactions amounted to bill trading without actual purchase or supply of goods.
The petitioner contended that the transactions related to genuine government contracts that had been duly executed. It was submitted that bathroom doors, toilet doors, and other materials had actually been installed in Government properties. The petitioner argued that the allegation regarding non-existent suppliers was factually incorrect because the suppliers’ GST registrations were valid on the dates of purchase and were cancelled only subsequently.
The petitioner further submitted that bills and documents evidencing movement of goods and actual transactions were available and could be produced before the respondent authority. However, due to reasons beyond the petitioner’s control, those documents could not be produced during the enquiry proceedings.
The Additional Government Pleader argued that the burden of proof rested entirely on the assessee under Section 155 of the Tamil Nadu Goods and Services Tax Act, 2017. It was submitted that the petitioner was required to produce documentary proof to substantiate the ITC claim and satisfy the assessing officer regarding the genuineness of the transactions.
