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2022 (1) TMI 444 - HC - VAT and Sales TaxValidity of re-assessment order - denial of input tax credit claimed on the basis of tax invoices issued by such selling dealers, who did not furnish tax compliance - burden of prove - fake/bogus transaction - HELD THAT:- The burden of proof certainly lies on the appellant –assessee to prove the transaction whether is genuine or not. Merely for the reason that the selling dealers have not filed the return and failed to discharge the tax liability by remitting the tax collected, could not be a ground to disallow the input tax credit claimed by the assessee unless such transaction is found to be not genuine and is a fictitious document/invoice created to claim input tax credit i.e., a bogus transaction. In the absence of such analysis made by the authorities, merely for the reasons as aforesaid, input tax credit could not be denied. It is also pertinent to mention that the first appellate authority ought to have examined the details of selling dealers in the background of not filing the return or the tax payment collected being made by such selling dealers. It is needless to observe that if such selling dealers are not existing dealers or deregistered dealers, there is absolutely no bar to deny the input tax credit claimed by the assessee, but such reason has to be clearly recorded for extending the benefit of input tax credit which was denied by the assessing authority - In the absence of such reasons forthcoming in the order of the authorities and in the light of the material now placed by the Revenue before this Court, which remains a finding of fact, it is deemed appropriate to set aside the orders of the revisional authority and first appellate authority and restore the matter to the file of the first appellate authority to reconsider the matter. Appeal allowed by way of remand.
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