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2015 (1) TMI 380 - GUJARAT HIGH COURTInput Tax Credit - Allowability of tax credit on purchases made from M/s. Shree Bhavani Ispat - Registration of all the selling dealers was cancelled retrospectively – Genuineness and bona fide of case – Held that:- Following the decision in MADHAV STEEL CORPORATION Versus STATE OF GUJARAT[2015 (1) TMI 233 - GUJARAT HIGH COURT] - no error has been committed by the Tribunal in entering into the merits of the case and even considering the appeal/s on merits against the order of assessment passed by the Deputy Commissioner - when even considering the documents on record forming part of the paper book, which have been relied upon by the learned advocate appearing on behalf of the appellant/s, the appellant/s – dealer/s have failed to prove the actual physical movement of the goods alleged to have been purchased from the vendors - when the respective appellant/s – dealer/s have failed to establish and prove the aforesaid important aspect of actual physical movement of the goods alleged to have been purchased by them from M/s. Shree Bhavani Ispat and M/s. Mangal Enterprises and on which the input tax credit have been claimed, the AO as well as the Tribunal have rightly rejected the claim of the respective appellant/s – dealer/s of input tax credit claimed u/s 11. The appellant/s – dealer/s have failed to satisfy / prove the actual physical movement of the goods alleged to have been purchased by them from the two vendors on which the input tax credit have been claimed and when the sale transactions are found to be not genuine and it appears that there were only billing activities, no error has been committed by the AO as well as Tribunal in denying the input tax credit - it is not established and proved by the dealer that in fact there was movement of goods from its vendor – M/s. Shree Bhavani Ispat, Bhavnagar - no error has been committed in holding that the activities by the selling dealer – vendor were the billing activities only and there was no selling deals - when there was no movement of goods and it was only billing activities, the input credit claimed on such transactions is rightly disallowed – Decided against assessee.
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