In a Landmark Judgement, the Honb’le Supreme Court has held that producing invoices or payments through cheques are NOT Sufficient to claim ITC sufficient.

Over and and above the invoices and the particulars of payment, the purchasing dealer has to produce further material like the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods including actual physical movement of the goods, alleged to have been purchased from the concerned dealers.

Attached herewith the Copy of Full Judgement and Highlighted Yellow Text for Quick Gist Understanding. 

Note that above was issued provisions of KVAT and was issued by SC reversing the HC and Second Tribunal Judgement which favored the assessee. 

Trust the same shall be useful in your endeavors.

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