Case Law Details
Commissioner Vs Soma Enterprises Ltd. (Allahabad High Court)
The Allahabad High Court recently addressed a revision petition under Section 58 of the Uttar Pradesh Value Added Tax Act, 2008, involving Soma Enterprises Ltd. The court’s decision centered on the substantiation of Input Tax Credit (ITC) claims and emphasized the necessity of providing conclusive evidence beyond invoices and payment details.
The petition raised pertinent questions regarding the validity of ITC claims solely based on invoices and bank transactions. The court’s attention was drawn to Section 16 of the Act, placing the burden of proof upon the assessee, particularly with matters within their knowledge. The court referenced the Supreme Court’s judgment in the case of State of Karnataka vs. M/s Ecom Gill Coffee Trading Private Limited, stressing that the mere production of invoices or payment by cheques/RTGS is insufficient to discharge the burden of proof on the assessee.
In the cited judgment, the Supreme Court outlined the requisite evidence to substantiate ITC claims, including details of the selling dealer, vehicle transport details, freight charges, delivery acknowledgments, and tax invoice particulars. The court highlighted that the genuineness of transactions must be established beyond doubt, and the burden of proof lies squarely on the purchasing dealer.
Examining the facts of the case, the court noted that while the respondent/assessee provided invoices and payment records, they failed to present additional documents related to goods transportation. Despite the absence of adverse documents from the Department, the Tribunal granted ITC solely based on invoices and payment details, contrary to the Supreme Court’s directive.
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