Firm making Fictitious Transactions by way of Generating E-way Bills: Kerala HC upholds Blocking of ITC [Read Order]
input tax credit – transactions by way of generating E-way bills – E-way Bills – E-way – Taxscan
input tax credit – transactions by way of generating E-way bills – E-way Bills – E-way – Taxscan
The Kerala High Court upheld the blocking of the input tax credit (ITC) in the matter relating to firm making fictitious transactions by way of generating E-way bills.
The present writ petition has been filed seeking quashing of the communication whereby the decision for blocking the input tax credit of the petitioner for an amount of Rs. 16,00,000/- has been communicated to the petitioner. According to the petitioner, the petitioner had received supplies from Mr. Shine Abraham. The invoice number of fake GSTIN registration have been taken by people for considering the input tax credit through fake invoices.
From the enquiry conducted by the Enforcement Department, it was found that the said address had shutter room and the same was closed for a long period. Attempts to find out the owner of the shop had failed. After finding that the shop is closed for a long period on the basis of the proofs collected and in the presence of two undersigned independent witnesses, Scene Mahazar was prepared in respect of the shop on 08.06.2023.
It was also noticed that the said firm was making fictitious transactions by way of generating e-way bills. The firm mentioned above has settled their tax liabilities ITC utilisation.
A Single Bench of Justice Dinesh Kumar Singh observed that “Considering these facts that on the basis of fake invoices the petitioner had raised the claim for input tax credit on the supplies allegedly received on the basis of the fake invoices, the communication has been issued. Decision to block input tax credit is an administrative decision. I do not find any substance in this writ petition. The reason for blocking the input tax credit is the fake invoice and fake address of the firm from whom the petitioner had allegedly received the supply. Thus this writ petition is dismissed. The petitioner may avail to any other remedy as may be available to him under the law.”
To Read the full text of the Order CLICK HERE
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