Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
The High Court held that a customs broker who merely filed documents supplied by the importer had acted as a ministerial conduit, with no evidence of knowledge, intentional suppression, or participation in fraud. Those findings were factual and showed no perversity, so no substantial question of law arose under Section 130 of the Customs Act. The Court also held that, because the penalty against the respondent had been set aside in full, there was no quantified liability surviving against him and the Revenue could not rely on the investigation's overall value or the importer's separate liability to cross the monetary threshold for appeal. The appeal was not admitted and was dismissed.
The High Court held that a customs broker who merely filed documents supplied by the importer had acted as a ministerial conduit, with no evidence of knowledge, intentional suppression, or participation in fraud. Those findings were factual and showed no perversity, so no substantial question of law arose under Section 130 of the Customs Act. The Court also held that, because the penalty against the respondent had been set aside in full, there was no quantified liability surviving against him and the Revenue could not rely on the investigation's overall value or the importer's separate liability to cross the monetary threshold for appeal. The appeal was not admitted and was dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4809 
Join Channel 
