Case Law Details
Malik Traders Vs State of U.P. (Allahabad High Court)
Introduction: In a significant judgment, the Allahabad High Court addressed a case involving Malik Traders and the State of Uttar Pradesh (U.P.). The court ruled on the denial of input tax credit (ITC) and emphasized the importance of providing comprehensive evidence in GST (Goods and Services Tax) cases.
Background of the Case: Malik Traders, a registered dealer engaged in the purchase and sale of waste materials, plastic scrap, paper scrap, and metal scrap, found themselves entangled in a tax dispute. The company claimed input tax credit on its purchases, which is a crucial component of the GST system designed to avoid double taxation. However, their claim was disputed by the tax authorities, who alleged that the ITC had been wrongly availed.
The tax authorities initiated proceedings under Section 74 of the Uttar Pradesh GST Act, alleging that Malik Traders had wrongfully availed input tax credit amounting to INR 12,32,148. This claim was confirmed in an order dated March 6, 2021, by the Additional Commissioner of Grade-2 (Appeal) First, Commercial Tax, Meerut.
Key Arguments and Legal Standpoint:
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in the above case , i want to say that what is the meaning of e way bill why it is imposed, e way bill is for tracking of transaction or transportation of goods, so how can high court deny the e way bill. one thing more how can anyone prove that the goods are received by him after two years, now he have not any cc tv footage. please tell more means to prove it.