Rajshi Processors Raebareli Vs State of U.P. (Allahabad High Court)
Rajshi Processors Raebareli filed a petition under Article 226 of the Constitution of India seeking to challenge an order passed by the Deputy Commissioner, Commercial Tax, imposing tax liability and penalty on the petitioner for allegedly claiming false Input Tax Credit (ITC). The petitioner also challenged the dismissal of their appeal against this order by the Additional Commissioner.
Case Details
1. Survey Conducted: The petitioner, engaged in manufacturing and sale of Aluminum Casting & Machinery Parts, had filed GSTR 3B for certain months. A survey conducted by the Special Investigation Branch revealed that the petitioner claimed to have received inward supplies from three firms, which were later found to be non-existent and bogus.
2. Fraudulent ITC Claims: The petitioner allegedly claimed ITC benefits without any actual supply of goods, based on fake invoices from these non-existent firms, amounting to Rs. 10,12,491.
3. Adjudication and Appeal: The adjudicating authority issued a notice under Section 74 and the petitioner submitted explanations and evidence. However, the authority did not accept the petitioner’s explanation and imposed tax liability, penalty, and interest. The petitioner appealed against this decision, but the appellate authority upheld the adjudicating authority’s order.
