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.
FCA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)
Managing Partner at Ankit Gulgulia & Associates, Chartered Accountants. The Firm was setup in 2011 and has offices in Delhi NCR. AGA provides professional services to a large number of Clients both in India and Internationally.
AGA is supported by a well experienced team which include Chartered Accountants, Management Graduates, Company Secretaries, Cost Accountants, Valuers etc.