2025 (2) TMI 1152

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....9, 2019-2020. 2. The petitioner appears to be a dealer in scrap steel and had transactions with the following dealers during the respective Assessment Years: Sl.No. Assessment Years Dealer's Name 1 2017-2018 Tvl.R.R.Trading 2 2018-2019 Tvl.Asian Steels 3 2019-2020 Tvl.Lucky Scrap Traders 3. Details of the credit availed by the petitioner from different dealers are as under:- Sl.No. W.P.Nos and Assessment Years Name and GSTIN (As per impugned order) ITC Availed 1 W.P.No.10966 of 2021 (2017-2018) 1. Tvl.RR Trading & Co (33EDYPS0948Q1ZC) Rs. 75,44,264/- 2. Tvl.Asian Steel Traders (33AMDPS4215Q1ZQ) Rs. 13,38,994/- 3. Tvl.Lucky Scrap Traders (33BKXPA5853M1ZL) Rs. 7....

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....rom the petitioner and the Show Cause Notices were issued for the respective Assessment Years seeking to deny the Input Tax Credit availed by the petitioner on the strength of invoices raised by the above mentioned dealers on the petitioner who were not in existence. 7. In these writ petitions, the learned counsel for the petitioner submits that the petitioner has made payment in cash / cheques to the respective dealers who had encashed the cheques issued by the petitioner and therefore there is no justification in imposing tax liability on the petitioner by asking the petitioner to reverse the Input Tax Credit, merely because, it is perception of the respondents Department that the above mentioned dealers have resorted to circular tradi....

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..... 11. On the other hand, the learned Government Advocate for the respondents would draw attention to a communication received from the then Principal Secretary / Commissioner of Commercial Taxes, Chennai - 600 005 addressed to the Additional Commissioner (ST) Intelligence-I, Chennai, the Joint Commissioner (ST) Intelligence-II Chennai, the Joint Commissioner (ST) Intelligence, Coimbatore and the Joint Commissioner (ST) Intelligence, Trichy, wherein, they have listed out the names of supplying dealers with whom the petitioner had transactions. It is submitted that none of the dealers with whom the petitioners' transactions were bona fide transactions and thus the petitioner was indulging in passing Input Tax Credit to facilitate evasi....

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....has no case for interference. Hence, prays for dismissal of the writ petitions. 16. I have considered the arguments advanced by the learned counsel for the petitioner and the learned Government Advocate for the respondents. 17. The law on the subject has been settled by the Division Bench of this Court in Sahyadri Industries Limited Vs. State of Tamil Nadu, [2023] 115 GSTR 320 (Mad.). Although the said decision was rendered in the context of Tamil Nadu Value Added Tax (TNVAT) Act, 2006, the ratio therein will squarely apply to the facts of the case under the Central Goods and Services Tax (CGST) Act, 2017 and the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017. 18. The fact remains that the petitioner has discharged the entire ....