Madras HC allows Opportunity to Prove Goods Movement for Alleged Wrong ITC Claims

Ravi Chitra Vs Assistant Commissioner (ST) (Madras High Court)

In a recent judgment, the Madras High Court addressed the issue of Input Tax Credit (ITC) claim disputes, emphasizing the necessity of providing evidence of the actual movement of goods. The case of Ravi Chitra Vs Assistant Commissioner highlights the importance of ensuring proper documentation to substantiate ITC claims.

Detailed Analysis:

1. Background of the Case: The petitioner contested a tax demand order dated 30.08.2023, arguing that they were not given a fair opportunity to contest the tax demand on its merits. The dispute arose from a show cause notice alleging wrongful availing of ITC for the tax period 2017-2018.

2. Petitioner’s Response: The petitioner responded to the show cause notice on 03.04.2023, presenting various documents such as original tax invoices, bank statements, ledger accounts, and relevant returns of the supplier and petitioner. However, the impugned order was issued on 30.08.2023, without the petitioner’s knowledge.

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