https://www.taxtmi.com/caselaws?id=752923 The Allahabad HC dismissed a petition challenging levy of tax and penalty for fraudulent input tax credit claims. The petitioner claimed ITC from registered firms that were later discovered to be non-existent and bogus during investigation by Special Investigation Branch. Despite initial compliance with Section 16 GST Act requirements and firms being registered during transactions, the court held that mere registration cannot justify ITC benefits when firms are subsequently proven non-existent with no actual supplies. The court ruled fraud vitiates proceedings and prior ITC grants create no estoppel against recovery action for wrongly availed benefits. en-us Tue, 14 May 2024 00:00:00 +0530 Mon, 20 May 2024 20:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752923 The Allahabad HC dismissed a petition challenging levy of tax and penalty for fraudulent input tax credit claims. The petitioner claimed ITC from registered firms that were later discovered to be non-existent and bogus during investigation by Special Investigation Branch. Despite initial compliance with Section 16 GST Act requirements and firms being registered during transactions, the court held that mere registration cannot justify ITC benefits when firms are subsequently proven non-existent with no actual supplies. The court ruled fraud vitiates proceedings and prior ITC grants create no estoppel against recovery action for wrongly availed benefits. Case-Laws GST Tue, 14 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752923