High Court Grants Appeal Extension, Mandates Proof of Goods Movement and Transaction Authenticity for Tax Credit Consideration

HC allowed condonation of delay in appeal. Appellant directed to prove goods movement and transaction genuineness through documentary evidence. Adjudicating authority will verify supplier-side documentation. If movement is established, input tax credit may be granted; otherwise, original order stands. Case remanded for further investigation and verification of submitted documents.

---

---

Issues involved: Delay in filing the appeal, challenge to adjudication order, verification of genuineness at supplier's end, movement of goods, input tax credit denial.

Delay in filing the appeal: The High Court of Calcutta allowed the condonation of delay in filing the appeal due to sufficient cause shown by the appellant.

Challenge to adjudication order: The Court directed the appellant to prove the movement of goods to establish the genuineness of the transaction. If proven, the adjudicating authority will verify at the supplier's end; otherwise, the findings in the adjudication order will be reaffirmed.

Verification of genuineness at supplier's end: The appellant, as the purchaser, claimed to have valid tax invoices and paid taxes. The Court emphasized the need to prove the movement of goods through documentary evidence before the adjudicating authority can verify at the supplier's end.

Movement of goods and input tax credit denial: The appellant was granted an opportunity to prove the movement of goods to avoid denial of input tax credit. The Court instructed the appellant to treat the original order as a show cause notice and submit documents for verification.

Conclusion: The appeal and application were disposed of with directions for the appellant to prove the movement of goods. The adjudicating authority will investigate based on the submitted documents. The authenticity of documents produced by the appellant will be rigorously verified.

---