Input tax credit claims based on alleged bogus transactions were rejected by applying precedent on non-existent suppliers.

Input tax credit was challenged on the ground that the underlying transactions were allegedly bogus and the suppliers non-existent. The SC applied the ratio of an earlier precedent on claims without actual transactions and, there being no contest from the respondent, treated that principle as governing the facts before it. On that basis, the credit claim was not accepted and the appeal was disposed of in line with the earlier judgment.

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Issues: Whether input tax credit could be denied where the transactions were claimed to be bogus and the suppliers were alleged to be non-existent.

Analysis: The appeal was disposed of in light of the ratio laid down in the cited precedent concerning bogus claims without actual transactions. In the absence of any contest from the respondent, the Court applied that ratio to the facts before it.

Conclusion: The claim to input tax credit was not accepted and the appeal was allowed in terms of the earlier judgment.

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