Input tax credit assessments remanded for verification of original purchase records and fresh decision on merits

Input tax credit assessments disallowing credit were sent back for fresh consideration where the petitioner claimed inability to produce and match original purchase records due to medical incapacity and closure of business. The Court accepted the request for one further opportunity, directed production of the original documents before the authority, and required verification of the purchase records under the statutory input tax credit framework. The authority was then to pass a fresh order on merits and in accordance with law; the impugned assessments were neither finally sustained nor quashed.

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Issues: Whether the impugned tax assessments disallowing input tax credit required interference and whether the matter should be remitted to enable the petitioner to produce original purchase documents and explain the tax liability.

Analysis: The dispute was confined to the petitioner's inability to produce or match original documents because of medical incapacity and the closed status of the business. The Court noted the petitioner's request for one further opportunity and accepted that the relevant originals should be produced before the authority. In the light of the statutory scheme governing input tax credit and the need for verification of purchase records, the authority was directed to examine the originals and thereafter pass a fresh order on merits and in accordance with law.

Conclusion: The assessments were not finally upheld or quashed; the matter was remitted to the authority for fresh consideration after giving the petitioner an opportunity to produce the original documents.

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