Reasoned order to be passed against the accused taxpayer involved in passing on fake ITC without actual movements of goods

Last updated: 17 November 2021

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The Gauhati High Court has ruled that a detailed, reasoned order must be issued by the Joint Commissioner of State Tax when dealing with taxpayers accused of claiming fake Input Tax Credit (ITC) without actual movement of goods. While the court acknowledged that the taxpayer failed to provide sufficient evidence during the investigation, it stressed the importance of natural justice. Therefore, the taxpayer must be given a final opportunity to present all relevant materials and arguments before a final decision is made.

Court :
Gauhati High Court

Brief :
The Hon'ble Gauhati High Court in Krit Kunal Dhawan v. State of Assam and Ors. [WP(C)/5642/2021, dated October 29, 2021] 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.

Citation :
WP(C)/5642/2021, dated October 29, 2021

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Judgement posted by

Bimal Jain

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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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