2019 (12) TMI 8

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..... ril 2014 to March 2015 and the consequential demand notice issued thereto, both dated 30.03.2019 vide Annexures-F and G respectively insofar as it amounts to disallowance of input tax credit. 3. The petitioner is a partnership concern engaged in the business of manufacturing and reprocessing of Steel Bars and Job Work for straightening, polishing, De-scaling and Cutting etc., and a registered dealer under the provisions of the Act.   4. The respondent has concluded the reassessment proceedings relating to the tax periods in question pursuant to the proposition notice issued and considering the reply submitted, denying the input tax credit mainly on the ground that the selling dealer has not deposited the taxes collected. Being aggrie .....

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..... he parties and perusing the material on record, it is ex-facie apparent that the Assessing Authority has denied the input tax credit mainly on the ground that the selling dealer has not deposited the taxes collected. It is recorded that the selling dealer - M/s. Sai Baba Industries, Tumkur TIN: 29290220285, has not filed monthly returns in VAT-100s from December 2014 onwards; it clearly goes to prove that the petitioner has not paid output taxes payable to the Government. 8. There is no dispute regarding the genuineness of the purchase made by the petitioner - purchasing dealer. The Assessing Authority sans examining the transaction of the petitioner inasmuch as the payment of taxes made to the selling dealer, merely for the reason that th .....

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..... of producing false and fake invoices, on the basis of which, such input tax credit was claimed by the purchasing dealers." 10. In the case of Bhavani Enterprises supra, it was imperative that some of the dealers from whom input tax credit invoices were claimed in the case were before this Court in Microqual's case namely, M/s. S.L.V. Enterprises and M/s. T.D. and Company, where the similar bogus selling dealers registered without actual dealership producing false and fake invoices claiming input tax credit. In that context it has been held that the assessee did not knowingly produced such invoices, knowing them to be false or fake. A dealer entering into a genuine transaction of purchase always knows the existence and identity of selling d .....

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