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2025 (5) TMI 139 - HC - GSTEntitlement to claim ITC - petitioner wants to place the additional documents before the appellate Authority for due consideration in regard to the claims of ITC - HELD THAT - The Apex Court in State of Karnataka vs. Ecom Gill Coffee Trading Private Limited 2023 (3) TMI 533 - SUPREME COURT had required that for claiming benefit of ITC the documents have to be placed before the authorities concerned in regard to the various transactions which are made between the parties. Having regard to the judgment of the Apex Court rendered in Ecom Gill Coffee Trading Private Limited these writ petitions are being partly allowed setting aside the order dated 04.03.2023 passed by Additional Commissioner Grade-II (Appeal) I State Goods and Service Tax Agra and remanding back the matter requiring the appellate Court to grant time to the petitioner to place all the required documents as per the judgment of the Apex Court for consideration of the claim of ITC and decide the appeals thereafter within a period of three months.
1. ISSUES PRESENTED and CONSIDERED
The core legal questions considered by the Court in these writ petitions are:
2. ISSUE-WISE DETAILED ANALYSIS Issue 1: Entitlement to ITC by the Petitioner Supplying Exclusively to Indian Railways Relevant Legal Framework and Precedents: The GST regime allows registered persons to claim ITC on inputs and input services used in the course of business. The genuineness of transactions and proper documentation are prerequisites for claiming ITC. The Apex Court's ruling in Ecom Gill Coffee Trading Private Limited emphasized the necessity of placing relevant documents before authorities to substantiate ITC claims. Court's Interpretation and Reasoning: The Court recognized that the petitioner is a registered proprietorship engaged in manufacturing and supplying goods exclusively to Indian Railways. The petitioner's claim to ITC depends on the genuineness of transactions and availability of documentary evidence as per the statutory requirements. Key Evidence and Findings: The petitioner sought to rely on documents including gate passes, GST returns, debit notes, invoices, supplier registration certificates, and trading accounts to establish the genuineness of their transactions and entitlement to ITC. Application of Law to Facts: The Court acknowledged that the petitioner's entitlement to ITC is contingent upon submission and verification of the relevant documents as mandated by the Apex Court's recent judgment. Treatment of Competing Arguments: The respondent did not dispute the requirement of placing documents for ITC claims but relied on the finality of the appellate order. Conclusions: The Court found that the petitioner should be permitted to place the requisite documents before the appellate authority for due consideration of the ITC claims. Issue 2: Permissibility of Filing Additional Documents Post-Appellate Order in Light of Apex Court Judgment Relevant Legal Framework and Precedents: The Apex Court judgment in Ecom Gill Coffee Trading Private Limited, delivered on 13.03.2023, postdates the appellate order in this case (dated 04.03.2023). The judgment requires that for claiming ITC, the dealer must place relevant documents before the authorities to establish the genuineness of transactions. Court's Interpretation and Reasoning: The Court noted the temporal sequence of the appellate order and the Apex Court judgment. Since the appellate order was passed before the Apex Court ruling, the petitioner was not afforded the opportunity to place documents as now mandated. Key Evidence and Findings: The petitioner submitted the relevant documents along with the writ petitions and expressed willingness to place them before the appellate authority. Application of Law to Facts: The Court held that in the interest of justice and to align with the Apex Court's authoritative guidance, the petitioner must be allowed to submit the documents for consideration. Treatment of Competing Arguments: The respondent's reliance on the finality of the appellate order was outweighed by the need to implement the Apex Court's directive ensuring fair adjudication of ITC claims. Conclusions: The Court concluded that the matter must be remanded to the appellate authority with directions to permit the petitioner to file the documents and reconsider the claims accordingly. Issue 3: Validity of the Appellate Authority's Order Upholding Assessment Orders Relevant Legal Framework and Precedents: The appellate authority's role includes re-examination of facts and law in appeals against assessment orders. The Apex Court's ruling imposes a procedural requirement for submission of documents to substantiate ITC claims. Court's Interpretation and Reasoning: The Court observed that the appellate authority's order was rendered without the benefit of the Apex Court's judgment, which is binding and clarifies procedural prerequisites for ITC claims. Key Evidence and Findings: The appellate order dated 04.03.2023 was passed before the Apex Court judgment dated 13.03.2023 and did not consider the documents now tendered by the petitioner. Application of Law to Facts: The Court reasoned that the appellate order must be set aside and the matter remanded for fresh consideration in light of the Apex Court's ruling and the documents to be placed by the petitioner. Treatment of Competing Arguments: The respondent's opposition to reopening the matter was noted but found insufficient to override the requirement of adherence to the Apex Court's mandate. Conclusions: The appellate order was set aside and the matter remanded with directions to allow the petitioner to place documents and decide the appeals within three months. 3. SIGNIFICANT HOLDINGS The Court held:
Core principles established include:
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