Input tax credit denial set aside for want of hearing and non-consideration of purchase bills, with remand for fresh review.

Denial of input tax credit cannot be sustained where the assessee was not granted a personal hearing and the purchase bills and other supporting materials were not considered. The court noted that the impugned assessment orders gave no reference to the documents produced in support of the claim, and that credit should not be refused merely because of lapses attributable to sellers when the buyer had complied with the requirements for claiming the benefit. The orders were set aside and the matters were remitted for fresh consideration after giving the petitioner an opportunity to file objections and supporting documents.

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Issues: Whether the assessment orders denying input tax credit and imposing consequential demands could be sustained when no personal hearing was granted and the purchase bills produced by the petitioner were not considered.

Analysis: The record showed that the petitioner was not afforded a personal hearing. The impugned orders also contained no reference to the purchase bills and other material produced in support of the claim for input tax credit. Where the petitioner had complied with the requirements for claiming input tax credit, denial of the benefit merely on account of lapses attributable to the sellers was not justified. In these circumstances, the matter required fresh examination after giving the petitioner an opportunity to place objections and supporting documents.

Conclusion: The impugned orders were set aside and the matters were remitted to the respondent for fresh consideration after affording due opportunity of hearing to the petitioner.

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