Case Law Details
Shine Abraham Vs State Tax Officer (Kerala High Court)
Introduction: The Kerala High Court recently delivered a verdict in the case of Shine Abraham Vs State Tax Officer, addressing the blocking of input tax credit (ITC) amounting to Rs. 16,00,000/-. The petitioner, involved in transactions with M/s. Evershine Agro Spices, faced this action due to alleged fictitious transactions and the use of fake invoices.
Detailed Analysis: The petitioner claimed to have received supplies from Mr. Shine Abraham, specifically mentioning the address of Evershine Agro Spices. However, an investigation by the Enforcement Department revealed discrepancies. The provided address, Golden Plaza, was found to have a shuttered room, with no trace of the mentioned firm. Despite attempts to locate the shop owner, the shop remained closed for an extended period.
Further investigation showed that the firm engaged in fictitious transactions by generating e-way bills. The address and invoices were found to be fake, leading to the blocking of input tax credit. The administrative decision, communicated through Exhibit P-3, highlighted the use of fake invoices by the petitioner for claiming ITC on supplies that were never received.
The Scene Mahazar, prepared on 08.06.2023, documented the closed shop and the inability to identify the owner. The decision to block ITC was justified based on the substantial evidence gathered during the enforcement inquiry. The petitioner was urged to seek alternative legal remedies, as the court dismissed the writ petition, emphasizing the gravity of using fake documents in the tax credit claims.
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