Judgments and provisions for when our supplier indulged in malpractice but we have invoices for genuine transactions

[Gautam Godhwani]

All the judgments seem to be either towards retrospective cancellation of supplier (Section 16(2)(a)) or when the supplier has not deposited tax to the government - in Section 16(2)(c). But none are for when the supplier has indulged in fake invoicing with other recipients and us the main recipient is suffering even after having done genuine transactions.

AI Summary

Recipient Challenges ITC Reversal Due to Supplier's Fake Invoicing; Burden of Proof and Appellate Relief Discussed A discussion on a forum revolves around a recipient facing issues with Input Tax Credit (ITC) reversal due to their supplier's alleged malpractice involving fake invoicing. The recipient argues that their transactions with the supplier were genuine, despite the supplier's misconduct with others. They seek legal precedents where similar situations were resolved favorably. Contributors suggest seeking cross-examination of involved parties and highlight the lack of mechanisms to verify supplier credit genuineness. Legal references are provided, but the consensus is that the burden of proof lies with the recipient, and relief might be possible through appellate authorities.