Krit Kunal Dhawan Vs The State of Assam (Gauhati High Court)
Reasoned order to be passed against the accused taxpayer involved in passing on fake ITC without actual movements of goods
HC held that in a case where assessee is accused of passing on fake Input Tax Credit (ITC) without actual moment of goods, a reasoned order must be passed by Joint Commissioner of State Tax, after acknowledging all the relevant material and contentions that the assessee may produce to satisfy the authorities.
Facts:
Kriti Kunal Dhawan (“the Petitioner”) is engaged in carrying on business in the name and style of eco fuel industries. An investigation was conducted and it was found that the taxpayer has utilized ITC from dubious firms. It has been reported in print and electric media that these dubious firms are involved in bill trading and passing on fake ITC without movement of actual goods therefore, ITC claimed from these firms by the Petitioner are sought to be reversed with levy of interest and penalty as per Assam Goods and Services Tax Act 2017 (“AGST Act”).
The Petitioner was summoned on September 10, 2021 for further investigation and consequently the Petitioner appeared on September 23, 2021 and requested time up-to September 30, 2021. The request made by the Petition was agreed by the authorities but even on September 30, 2021 however, the Petitioner failed to appear.
Therefore a Show Cause Notice in form DRC-01 was issued on October 8, 2021 (“the SCN”) as per Rule 142(1)(a) of the Assam Goods and Service Tax Rules, 2017 (“AGST Rules”).
Issues:
