Input tax credit depends on proof of vendor tax payment; concurrent factual findings were not disturbed absent perversity.

Input tax credit was treated as a concession dependent on fulfilment of statutory conditions, including proof that vendors had deposited tax into the Government treasury. The Tribunal's disallowance was sustained because the assessee had produced invoices and books of account, but had not taken reasonable steps to establish vendor tax payment, and the appellate authority had already made enquiries before granting partial relief. As the challenge was directed only against concurrent factual findings and no perversity was shown, the disallowance stood and no substantial question of law arose.

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Issues: Whether the Tribunal was justified in disallowing input tax credit when the assessee had produced tax invoices and maintained the entries in its books of account, and whether such disallowance gave rise to a substantial question of law.

Analysis: The Tribunal had upheld the finding that the evidence of tax payment by the vendors was not forthcoming in respect of the disputed claims. The first appellate authority had already made enquiries by deputing an inspector and by calling for vendor-related material, and had granted relief only to the extent supported by the available evidence. The assessee did not take reasonable steps to secure proof that the vendors had deposited tax into the Government treasury. Input tax credit was treated as a concession and not as an absolute right. The challenge was directed essentially against concurrent factual findings, and no perversity in those findings was shown.

Conclusion: The disallowance of input tax credit was upheld, and the question did not give rise to any substantial question of law.

Ratio Decidendi: A concurrent finding that vendors' tax payment is not established, if not shown to be perverse, cannot be interfered with in appellate jurisdiction, and input tax credit remains a concession dependent on the statutory conditions being satisfied.

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