GST DAILY – 343 : ITC can’t be allowed if genuineness of transaction with physical movement of goods couldn’t be proved: HC

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ITC can’t be allowed if genuineness of transaction with physical movement of goods couldn’t be proved: HC

THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF Anil Rice Mill V/s State Of U.P. Writ Tax No. 886 of 2023, decided on 14-8-2024

👉 Issue:-

✔️ Is it necessary to claiming ITC, proof of physical movement of goods too with genuineness of transaction?

👉 The Hon’ble High Court Judgement:-

✔️ Where assessee claimed ITC on purchases of peanuts, paddy and galla, however, it had only brought on record tax invoices, e-way bills and payment through banking channel, but no such details such as payment of freight charges, acknowledgement of taking delivery of goods, toll receipts and payment thereof had been provided, actual physical movement of goods and genuineness of transportation as well as transaction could not be established and, thus, impugned orders denying ITC were to be upheld.

Section 16 of Central Goods and Services Tax Act, 2017