Anil Rice Mill Vs State of U.P. And 2 Others (Allahabad High Court)
In the case of Anil Rice Mill vs. State of U.P. and Others, the Allahabad High Court dismissed a writ petition challenging the orders passed by the Deputy Commissioner, Commercial Tax, and the Additional Commissioner regarding the imposition of tax and penalties on Anil Rice Mill. The petitioner, a proprietorship firm, was accused of wrongfully availing input tax credit (ITC) under the GST Act for the months of June to September 2020-21. The firm argued that they had made payments through proper channels and that the failure of the selling dealer to deposit taxes should not impact their ITC claims. However, the court held that the burden of proving the genuineness of the transactions, including the physical movement of goods, lies with the purchaser. Since the petitioner failed to provide sufficient evidence, such as details of transportation and delivery, the court upheld the orders against the firm. The judgment emphasized that mere production of invoices and e-way bills is insufficient for claiming ITC, and the court rejected the petitioner’s reliance on earlier judgments, stating that recent Supreme Court rulings have clarified the stringent requirements for proving ITC claims.
