Input tax credit requires independent proof of genuine purchases and physical goods movement, not merely self-generated transaction records.

Input tax credit requires the purchasing dealer to prove genuine purchases and actual physical receipt of goods through reliable independent evidence. Tax invoices, self-generated weighbridge slips, goods-received notes and payment details do not by themselves establish the claim where they do not identify suppliers and are unsupported by transport receipts matching the stated vehicles. The Gujarat HC material states that the absence of independent proof of goods movement justified denying input tax credit, as the purchasing dealer did not discharge its burden of proving genuine transactions and delivery.

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Issues: Whether input tax credit could be allowed where the purchasing dealer failed to establish the actual movement and receipt of goods through independent evidence.

Analysis: The burden to prove the correctness and genuineness of an input tax credit claim rests on the purchasing dealer. Tax invoices, weighbridge slips, goods-received notes and payment particulars were insufficient where the slips and notes were generated by the assessee, did not identify the suppliers, and no transport receipts corresponding to the stated vehicle numbers were produced. The concurrent factual findings that there was no independent evidence of actual movement of goods warranted application of the requirement that the claimant establish genuine transactions and physical delivery of the goods.

Conclusion: The assessee was not entitled to input tax credit because it failed to discharge the burden of proving genuine purchases and actual movement of goods.

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