Case Law Details
Aastha Enterprises through its Proprietor Sanjay Kumar Vs State of Bihar (Patna High Court)
The Hon’ble Patna High Court in M/s. Aastha Enterprises v. State of Bihar [CWJ 10395 of 2023 dated August 18, 2023] held that ITC is in the nature of a benefit/concession and not a right extended to the assessee under the statutory scheme. The ITC to purchasing dealer will depend not only upon the collection by the seller but also the due payment by the seller to the Government and the burden of proof lies with the assessee to substantiate that the tax collected has been paid to the government by the supplier.
Facts:
M/s. Aastha Enterprises (“the Petitioner”) purchased goods from the supplier and paid the taxable value along with the tax amount to the supplier. However, the supplier did not deposit the tax amount to the government.
The Petitioner claimed the ITC of the of the said tax amount and was of the view that since, the tax has been paid to the supplier thus, he is eligible to avail ITC.
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