Shreenika Logistics and Trading Company Vs Joint Commissioner of State Tax (Orissa High Court)
The Orissa High Court delivered a judgment in the case of Shreenika Logistics and Trading Company Vs Joint Commissioner of State Tax, addressing a writ petition filed to challenge a demand for tax, interest, and penalty under §74 of the Central Goods and Services Tax Act, 2017.
Factual Background
The petitioner, a company named Shreenika Logistics and Trading Company, was issued a demand for a total of Rs. 34,64,660 for the tax periods of January 2024 to March 2024. The demand was based on allegations of the wrongful availment and utilization of Input Tax Credit (ITC). The revenue department alleged that the petitioner had transacted with three suppliers—M/s. Swastik Trade Ventures, M/s. MG Trade and Services, and M/s. Navyug Trade and Services—on the strength of fake invoices, as these entities were found to be non-existent upon departmental inquiry.
Petitioner’s Argument
The petitioner argued that it had submitted a reply to the show-cause notice and provided documents to substantiate its claim for the availed ITC. It contended that the burden of proof lay with the revenue department to prove that the transactions were with non-existent suppliers. The petitioner further claimed that the assessing authority’s finding of fraudulent transactions was erroneous and based on an improper evaluation of the evidence.
