Shiv Trading Vs State of U.P. (Allahabad High Court)
The Allahabad High Court dismissed a writ petition filed by Shiv Trading challenging the imposition of tax, penalty, and interest amounting to ₹45.21 lakhs under Section 74 of the GST Act. The petitioner, a proprietorship firm engaged in the sale of iron machinery parts, claimed Input Tax Credit (ITC) on purchases from M/s Krishna Trading Company, which was later found to be non-existent. Despite submitting tax invoices, e-way bills, weighment slips, and payment records, the court found that the petitioner failed to prove the actual physical movement of goods. The court emphasized that mere production of invoices is insufficient to claim ITC; the burden of proof lies on the dealer to establish the genuineness of transactions and actual movement of goods. The court cited the Supreme Court’s judgment in Ecom Gill Coffee Trading Pvt. Ltd., reiterating that the dealer must provide comprehensive evidence, including vehicle details and payment records, to substantiate their ITC claims. The petitioner’s failure to meet this burden led the court to uphold the penalty and dismiss the writ petition, asserting that the proceedings initiated by the GST authorities were justified.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
