No ITC be denied solely for absence of lorry receipts and e-way bills where supplier was registered and tax stood discharged

Last updated: 22 June 2026

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Quick Summary

The Madras High Court has ruled that Input Tax Credit (ITC) should not be denied to a genuine recipient simply because lorry receipts or e-way bills are missing. This is especially true if the supplier was registered at the time, paid the relevant taxes, and provided tax invoices with vehicle details. The court emphasised that tax authorities must consider all evidence, not just the absence of specific documents, before denying ITC.

Court :
Madras High Court

Brief :
The Hon’ble Madras High Court in M/s. Akal Trade Links v. The Assistant Commissioner (ST) [W.P. No. 20601 of 2023 dated June 05, 2026] quashed the order passed by the Assistant Commissioner (ST) confirming the demand on the ground of wrongful availment of Input Tax Credit ( “ITC” ) for non-production of lorry receipts, weighment slips and e-way bills, and held that ITC cannot be denied to a bona fide recipient solely on such grounds where the supplier was a registered person during the relevant period, the tax invoices contained vehicle particulars, and the supplier had filed returns and discharged the corresponding tax liability on the disputed supplies.

Citation :
W.P. No. 20601 of 2023 dated June 05, 2026

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1999

(Excl. of GST ₹359)

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3499

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4999

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Attached File : 671907_6015_akal_trade_links.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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