2024 (2) TMI 234

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....18. The allegation was that although the Integrated Goods and Service Tax (IGST) was not paid and 'NIL' return had been filed by the seller, the petitioners had availed of input tax credit, contrary to law. The petitioners have challenged the said order on the ground that the invoices with regard to payment to the seller would indicate that for every transaction for the said financial year with the particular seller, the IGST had been paid to the seller. 2. According to the petitioners, non-compliance of the law by the seller could not saddle the petitioners with the burden of refund of input tax credit which the petitioners had rightfully availed. The petitioners further submit that the order impugned is without jurisdiction and issued ....

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....supplier, did not reflect. Thus, notices for recovery were issued to the appellant therein and grievance of the appellant was that without conduct of the enquiry against the supplier and without effecting recovery from the supplier, the appellant therein could not have been saddled with the proceeding under the Act. On scrutiny of the return submitted by the supplier, the discrepancies were noticed by the authority. 7. Ultimately, it was held by the Hon'ble Division Bench that without resorting to any action against the selling dealer, the authority could not have arbitrarily reversed the input tax credit availed of by the appellant. Unless exceptional case could be shown by the authority that the supplier was either missing or business ....

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.... not proceed on the basis that the petitioners had accepted the liability to pay the amount demanded. It further appears that the law has been settled by a Hon'ble Division Bench of this Court to the effect that before the buyer is proceeded against for reversal of the input tax credit on account of failure of payment of IGST, the supplier should be proceeded against. Only in exceptional cases, the authority could proceed against the buyer. 11. In this case, it appears that there are invoices which indicate that the IGST was paid to the seller. However, there is nothing on record to show that the seller had either wilfully suppressed such payment made by the petitioners or that the petitioners had actually paid the amount to the seller a....