Fraudulent Input Tax Credit clarified: issuers face penalties for fake invoices; recipients face recovery and penal consequences. Issuance of tax invoices without actual supply does not constitute a supply and therefore does not give rise to tax demand against the issuer, but the issuer is liable to penal action for issuing invoices without supply. A recipient who fraudulently avails and utilizes input tax credit without receiving goods or services is liable to demand and recovery of the wrongly availed credit with interest and to penal action under provisions for fraudulent availment or utilization of input tax credit. Where such a recipient passes on credit by issuing invoices without supply, no tax demand arises for outward transactions, but penal action applies for issuance of invoices without supply and for taking ineligible input tax credit.