Need SUPREME COURT ORDER COPY

There is no supreme court ruling yet. You can take the benefit of DY Beathel case as suggested by Mr Rawat. Chattisgarh HC has stayed the proceeding by citing that case.

All in all you will have to contest your case atleast till HC.

The judgment you are talking about was delivered by Supreme Court in pre GST regime in the case of Kay Kay Industries. 

This is a contentious issue. You can cite Supreme Court ruling as well as Madras HC ruling. though the department may argue Madras HC judgment was a jurisdictional HC judgment and they may not accept the same in your case. But this is case to fight with.

YOU CAN ALSO GIVE REFERENCE FROM " GST AUDIT MANNUAL" 20019,  ISSUED BY DEPARTEMENT WHICH PRESCRIBES THE GUIDELINE TO BE FOLLOW WHILE CONDUCTING AUDIT

IN PAGE 44 UNDER POINT NO. 5.8.3 : "ANY CREDIT NOT REFLECTED IN 2A OF RECEPIENT NEED TO BE VERIFY FROM SUPPLIER ".

IN ABOVE DEPARTMENT ITSELF SAYING THAT ITC NOT REFLECTED IN NEED TO BE VERIFY FROM SUPPLIER.