TMI Blog2017 (3) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... isting purchases, as understood by the IT Department based on the reference made by the VAT authorities, there was no occasion for the VAT authorities to collect VAT thereon. The collection of VAT tantamount to existence of transaction of purchases. The grievance of the VAT authorities was on non-payment of VAT on purchases happened. Thus, purchases made cannot be denied on the basis of aforesaid allegation. Neither has the Assessing Officer challenged the book results claimed to be reasonable by the assessee. No result of any other enquiry, if any, is recorded. There is no finding on facts adverse to the assessee except non-descript reference made by the VAT Department which, in our view, is not adequate to implicate the assessee with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has allegedly purchased goods of ₹ 15,28,569/- from M/s. Suyog Tradelink, Pune and ₹ 1,55,543/- from M/s. Siddhivinayak Enterprises, Pune. It was observed that both these parties were notified as Hawala firms/companies by the VAT Department. In support of the purchases made, the assessee submitted copies of bill of both the parties and proof towards payment made through bank. The assessee also submitted that the purchases are not bogus per se, but the issue raised by the VAT Department is limited to non-payment of VAT collected by the recipients from the assessee and not paying the same to the exchequer. It was submitted that the assessee has paid the amount of VAT payable by the sellers with interest and penalty and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere allegation made by the VAT Department that the suppliers are Hawala operators. This issue is essentially a question of fact. We note that the assessee has produced the bills and bank statement showing payment against the supplies received. The amount of VAT collected by the suppliers from the assessee was not paid to VAT Department. This has probably provoked the VAT Department to dub the impugned suppliers as Hawala operators. The VAT Department has finally collected the taxes from the purchaser of the goods, i.e. the assessee. Therefore, it is ostensible that the purchases are not found to be bogus per se by VAT Department. In the case of non-existing purchases, as understood by the IT Department based on the reference made by the VAT ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
